Investigation Agencies Probes ₹5.9 Billion Fraud at IDFC First Bank

Investigation Agencies has launched searches in connection with a ₹5.9 billion ($64 million) fraud reported by IDFC First Bank in February, according to a government source. The bank had earlier disclosed suspected fraudulent transactions in accounts linked to the Haryana state government, prompting internal action and regulatory scrutiny.

Following the discovery, the bank suspended four employees and appointed KPMG to conduct a forensic audit into the irregularities. Authorities suspect that fraudulent transactions were carried out through multiple accounts connected to government-linked entities, raising concerns about possible internal lapses and external manipulation.

India’s Enforcement Directorate is currently searching 19 premises related to the case. Preliminary findings indicate that some individuals allegedly routed funds through shell companies to purchase gold and real estate assets. On Tuesday, IDFC First Bank said it had paid ₹6.45 billion to settle claims linked to the suspected fraud.

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