SFIO summons 4 Big Audit Firms over Rs 2,000 Crores IndusInd Bank’s Derivatives Irregularities

According to the sources, the Serious Fraud Investigation Office (SFIO) has further increased the scope of the investigation in a big case related to IndusInd Bank. The case pertains to irregularities in the bank’s derivatives portfolio, which is estimated to result in a loss of around Rs 2,000 crore.

The investigation began when the bank itself reported in March 2025 that irregularities had been found in its derivatives transactions during the last 5 to 7 years. Following this, several audits were conducted, and the bank had to show a one-time loss of about Rs 2,000 crore in the March 2025 quarter. After this revelation, events progressed rapidly. In April 2025, then CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned. Earlier, when these irregularities came to light, Kathpalia was the head of the bank.

After this, on June 2, 2025, the bank reported this matter to the SFIO under the Ministry of Corporate Affairs. Then, on 23 December 2025, SFIO issued an official letter asking to initiate an investigation under Section 212 of the Companies Act, 2013. The bank made this information public on 24 December 2025.

Now, to look more deeply into this investigation, SFIO has sent summons to four big audit firms associated with the bank in the last 10 years. These include S R Batliboi & Co, Haribhakti & Co, M P Chitale & Co and MSKA & Associates. All of them are being interrogated, and the process is likely to be completed by April 27.

Earlier, the agency had also interrogated the bank’s former CEO Romesh Sobti and former treasury head Siddharth Banerjee. Apart from this, Kathpalia, Khurana and former CFO Gobind Jain were also called for questioning around March 30.

The government has initiated this investigation, keeping in mind the “public interest“, as serious accounting irregularities had come to light in the audit reports and forensic investigation. Now, SFIO is looking into whether these cases fall under the category of fraud under Section 447 of the Companies Act or not. Various types of documents are being scrutinised during the investigation, such as the ADT-4 form (which reports suspected fraud of Rs 1 crore or more), forensic audit reports, internal audits and other inspection reports.

The agency is also probing whether there was manipulation of accounts, creation of fake accounts, misclassification of assets or misrepresentation in the balance sheet. Also, some balances in “other assets” and “other liabilities” were found for which no clear basis was found. At present the SFIO is directly interrogating the concerned people by sending summons, and this process is not being done through the bank.