The bank said in a regulatory filing that it will take strict disciplinary, civil and criminal action against the employees and outsiders involved in this fraud. According to the bank, some employees of IDFC First Bank's Chandigarh branch have misappropriated Rs 590 crore from the accounts associated with the Haryana government.

The bank has lodged a police complaint and promised full cooperation to the investigating agencies. The bank has also requested some of the beneficiary banks to freeze the deposits in the accounts in which suspicious transactions have taken place. Apart from this, the bank is also getting a forensic examination of this case by an independent external agency.

The fraud came to light when the Haryana government requested the bank to close its account and transfer the money to another bank. During this process, the bank noticed some discrepancy between the amount stated in the accounts and the actual deposit. In fact, from February 18, 2026, some departments of the Haryana government started contacting the bank about their accounts. At the same time, a gap was found between the amount deposited in the bank accounts and the amount disclosed by the government.

The bank has clarified that this fraud is limited to certain accounts related to the Haryana government in the Chandigarh branch only. This will not affect other customers of the bank.

Taking immediate action, the bank suspended four employees and lodged a police complaint. The bank is conducting an in-depth investigation into the matter so that the real culprits can be identified and government money can be recovered. The bank has assured that it is taking the matter very seriously and the culprits will not be spared.