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Kotak Mahindra Bank faces Rs 150 crore Panchkula FD fraud allegations
Kotak Mahindra Bank is facing allegations of a Rs 150 crore fixed deposit fraud linked to the Panchkula Municipal Corporation, where discrepancies surfaced after a maturity request. The case, which follows closely after the IDFC First Bank episode in Haryana, involves claims of fake records, missing deposits and an alleged cover-up.
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Kotak Mahindra Bank faces Rs 150 crore Panchkula FD fraud allegations after IDFC case. Representational Image
Reported By: Ekta Suri
Written By: Ankit Kumar
Updated: Wed, Mar 25, 2026
03:24 PM IST
03:24 PM IST
New Delhi, ZeeBiz WebDesk
A fresh banking irregularity has surfaced in Haryana soon after the IDFC First Bank case, with Kotak Mahindra Bank now facing allegations linked to fixed deposits of the Panchkula Municipal Corporation. The issue came to light when civic officials approached the bank regarding the maturity of a fixed deposit, only to discover discrepancies in records. What began as a routine request has since triggered a wider reconciliation exercise, a police complaint and a multi-agency probe into suspected irregularities involving public funds, with initial estimates placing the discrepancy at around Rs 150 crore.
What is the Panchkula FD scam?
According to Zee Business sources, the Panchkula Municipal Corporation had parked funds in fixed deposits with a Kotak Mahindra Bank branch in Sector 11.
The discrepancy surfaced when officials sought the maturity amount of one such deposit. However, the bank reportedly could not trace the deposit in its records.
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While bank statements allegedly indicated that transactions had been processed, the funds were not reflected in the civic body’s account. This triggered a detailed review of all fixed deposits and linked accounts, where multiple inconsistencies were found. Initial findings suggest the discrepancy could be around Rs 150 crore.
What are the allegations?
The case centres around allegations that funds meant to be held as fixed deposits may not have been maintained as reflected in official records.
There are also claims that fabricated statements and documents may have been used over time to show deposits and transactions that did not exist in reality. According to Zee Business sources, bank employees are suspected to have attempted to conceal the irregularities for a prolonged period using such records.
Investigators are also examining the possibility of collusion between certain bank staff and officials linked to the Municipal Corporation, though no final conclusions have been drawn so far.
Government orders probe; vigilance, ACB step in
Following the complaint by the Municipal Corporation, a case has been registered and the Haryana government has ordered a formal investigation into the matter.
The probe has been handed over to the Vigilance and Anti-Corruption Bureau (ACB), which will examine the role of bank officials, possible internal lapses and any wider nexus behind the alleged fraud.
Authorities are expected to analyse transaction trails, account statements and documentation to establish how the discrepancy arose.
What has Kotak Mahindra Bank said?
Kotak Mahindra Bank has said it acted promptly after being approached by the Municipal Corporation and has initiated a detailed reconciliation of all fixed deposits and linked accounts.
In its statement, the bank said that based on records examined so far, account opening processes, KYC documentation, authorised signatories and instructions received were all in order. It added that transactions were handled in line with due process and applicable banking norms.
The bank also said a significant portion of the amounts under review has already been reconciled, and the process is continuing.
To ensure an independent examination, the bank has filed a formal complaint with the Panchkula Police and is cooperating fully with the Municipal Corporation, government authorities and law enforcement agencies.
Police probe and civic action underway
The Panchkula Police have begun investigating the matter following the complaint. The Municipal Corporation has also initiated steps to pursue legal action and has approached the Haryana government for further intervention.
Officials are now scrutinising account records and internal approvals to identify responsibility and determine whether the discrepancies were caused by systemic lapses or deliberate manipulation.
Read More: ED raids 19 locations in IDFC First Bank fraud case
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Ankit Kumar
Ankit Kumar
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