Kotak Mahindra Bank responds over alleged fraud: Initiated ‘detailed reconciliation’ of FDs to Panchkula Municipal Corp
Kotak Mahindra Bank today said it has initiated a detailed reconciliation of fixed deposits and linked bank accounts maintained by the Panchkula Municipal Corporation as per the civic body’s directions.
In his statement, the spokesperson said that the Bank is reviewing the records to verify that all processes and documents related to the Panchkula Municipality’s account are in order and are being executed as per norms.
What did Kotak Mahindra Bank announce?
“Following the directions of the Panchkula Municipal Corporation, Kotak Mahindra Bank initiated a detailed reconciliation of fixed deposits and associated bank accounts held by the Municipal Corporation,” the spokesperson told Mint.
They added that as part of this exercise, Kotak Mahindra Bank “verified based on the records examined so far that all account opening processes, KYC documents, authorized signatories and instructions received from the Municipal Corporation were in order and the accounts and transactions were carried out in strict adherence to due process and applicable banking norms.”
According to the spokesperson, the Bank has taken the following measures so far:
- The spokesperson added that Kotak Mahindra Bank is “fully cooperating with the Municipal Corporation, government authorities and law enforcement agencies in this process.”
₹150 crore scam: What were the allegations?
Kotak Mahindra Bank faces an allegation ₹150-crore scam linked to Panchkula Municipal Corporation in Haryana, with the civic body finding discrepancies in fixed deposit receipts (FDRs), diversion of funds and possible collusion, PTI reported on Tuesday.
Panchkula Municipal Corporation Commissioner Vinay Kumar told the agency that they discovered discrepancies in some FDRs maintained with the bank for a long time when funds were sought to be transferred on maturity. “We have reported the matter to the State Vigilance Department,” Kumar added.
Second such case in Haryana ₹590 crore IDFC First fraud
Notably, this is the second time a bank-related scam has come to light in Haryana. ₹590 crore fraud allegedly committed by employees of the Chandigarh branch has rocked IDFC First Bank. Haryana State Vigilance and Anti-Corruption Bureau (ACB) is currently investigating the matter and has made several arrests.
IDFC First Bank stated that the fraud was “limited to a select group of government-linked accounts operated under the government of Haryana through its Chandigarh branch” and emphasized that it did not extend to other customers of the branch.
This also came to light after the government department requested that the account be closed and the funds transferred to another bank.
