Kotak Mahindra Bank Responds to Allegations of Fraud, Launches Detailed Reconciliation of Fixed Deposits to Panchkula Municipal Corporation

Kotak Mahindra Bank Responds to Allegations of ₹150 Crore Fraud

Kotak Mahindra Bank has initiated a detailed reconciliation of fixed deposits and linked bank accounts maintained by the Municipal Corporation of Panchkula following instructions from the civic body. The bank has examined records to confirm that all processes and documentation related to the Municipal Corporation of Panchkula's account are in order and were handled as per norms.

Key Actions Taken

• A significant portion of the amounts under review has been reconciled with the Municipal Corporation of Panchkula, and the reconciliation process is continuing in an orderly manner.
• The bank has filed a formal complaint with the Panchkula Police in line with its governance standards to ensure that the matter is examined independently and comprehensively.
• Kotak Mahindra Bank is cooperating fully with the Municipal Corporation, government authorities, and law enforcement agencies in this process.

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Background of the Allegations

The allegations of a ₹150 crore fraud linked to the Municipal Corporation of Panchkula were reported by PTI on Tuesday. The civic body discovered discrepancies in its fixed deposit receipts (FDRs), fund diversion, and possible collusion. The Haryana State Vigilance and Anti-Corruption Bureau (ACB) is currently probing the matter and has made several arrests.

Similar Case in Haryana

This is the second time a bank-related fraud has come to light in Haryana after a ₹590 crore fraud allegedly committed by employees of a Chandigarh branch shook IDFC First Bank. The bank stated that the scam is confined to a specific group of government-linked accounts within the Haryana government operated through the Chandigarh branch and does not extend to other customers of the branch.

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