Kotak Mahindra Bank Flags Rs 160 Crore Suspected Fraud Linked to Panchkula Municipal Corporation

A possible financial irregularity is being investigated involving Kotak Mahindra Bank and the Panchkula Municipal Corporation.

The private lender has filed a police complaint (FIR) after some discrepancies were found in fixed deposits (FDRs) and related bank accounts.

The issue came to light when the Municipal Corporation asked the bank to transfer the funds upon maturity of the FDRs. During this process, the bank noticed that some records didn’t match properly. According to the Commissioner, Vinay Kumar, some of these deposits had been lying in the Panchkula branch for a long time.

The bank says it followed all rules properly, including KYC documentation, account opening procedures, and transaction processes. It also said that many of the amounts have already been checked and matched with the Municipal Corporation’s records, and the rest are still being reviewed.

To ensure transparency, the bank has started a detailed investigation and is working with police and government authorities. Reports suggest the suspected fraud could be around Rs 160 crore.

This incident comes shortly after another major banking fraud involving IDFC First Bank. In that case, around Rs 590 crore was found missing from certain Haryana government-linked accounts in a Chandigarh branch. The bank said the fraud was limited to specific accounts and did not affect other customers.

In both cases, the problems were discovered when government departments asked to close accounts or transfer funds, which led banks to notice mismatches in balances.