After IDFC, Kotak Mahindra Bank embroiled in Haryana banking scam
What's the story
Kotak Mahindra Bank is embroiled in a major financial scandal involving the Panchkula Municipal Corporation in Haryana. The discrepancy came to light when the bank was asked to transfer funds after one of its Fixed Deposit Receipts (FDRs) matured. This led to the discovery of similar discrepancies across other FDRs, with the total amount under scrutiny now estimated at around ₹150 crore.
Response
Bank launches detailed reconciliation exercise
In light of the discrepancies, Kotak Mahindra Bank has launched a detailed reconciliation exercise of the FDRs and associated bank accounts. The bank has also filed a formal complaint with the Panchkula police over these irregularities. A spokesperson for Kotak Mahindra Bank said that all account opening processes, KYC documentation, authorized signatories, and instructions from the Municipal Corporation were in order and transactions were done as per due process and banking norms.
Assurance
Bank assures full cooperation with authorities
Kotak Mahindra Bank has assured its full cooperation with all authorities in this matter. The spokesperson added that a big part of the amounts under review has already been reconciled with the Municipal Corporation, and the process is continuing smoothly. This incident comes on the heels of another fraud case involving IDFC First Bank, which recently reported a ₹590 crore fraud by some employees at a Chandigarh branch in Haryana government accounts.