Cracking down on banking lapses, the Haryana government has revoked empanelment for IDFC First Bank and AU Small Finance Bank after uncovering alleged financial discrepancies of Rs 590 crore. The immediate de-empanelment halts all state-related business with these lenders.
Government missive to departments, boards, corporations, and undertakings: Stop deposits, investments, transactions instantly. Relocate outstanding funds to vetted banks and close the impugned accounts.
The trigger? Flagrant disregard for fixed deposit norms by the finance wing’s watch. Sums slated for attractive flexi-FD schemes landed in low-interest savings, costing the state dearly in forgone earnings.
New mandates emphasize discipline: Stick to approved schemes, monitor bank compliance, reconcile monthly, report red flags pronto. Complete reconciliations by end-March 2026; submit verified reports by early April.
Spotlight fell on IDFC First after its filing revealed fraud in Chandigarh-handled state accounts. Staff-led unauthorized maneuvers hint at broader involvement.
How it broke: A department’s closure-cum-transfer bid exposed balance gaps. Since Feb 18, similar shortfalls plagued other ledgers.
Bank’s stance: Limited to pinpointed Haryana govt accounts—no spillover. Discrepant pool: ~Rs 590 crore, pending probe outcomes and recoveries.
Four staffers sidelined; wrongdoers face the works—internal discipline, civil suits, criminal probes. Lien holds requested, auditors looped in, independent forensic team engaged.