Haryana Sacks 2 Bureaucrats In IDFC Bank Case, Cuts Ties With Kotak Mahindra Bank

The Haryana government has ordered disciplinary action in two separate cases involving irregularities in government fixed deposits, suspending senior officers in one case and cutting official ties with a private bank in another.

The state government has suspended two Indian Administrative Service (IAS) officers in connection with alleged irregularities involving government funds parked with IDFC First Bank.

The suspension orders were issued by Chief Secretary Anurag Rastogi. Sources said the move is linked to irregularities involving approximately Rs 590 crore in fixed deposits held by various departments with the bank.

The Anti-Corruption Bureau has already arrested several IDFC First Bank employees in the case. The Haryana government has also referred the matter to the Central Bureau of Investigation (CBI).

Separately, the state government has de-empanelled Kotak Mahindra Bank from handling any government-related financial transactions.

The Finance Department has issued a circular to all departments directing them to stop operations with the bank. Departments have been asked to transfer existing balances and close accounts held with Kotak Mahindra Bank.

Officials said the action is linked to alleged misappropriation of Rs 160 crore in fixed deposits belonging to the Panchkula Municipal Corporation. Investigators alleged collusion between municipal officials and bank employees in the transaction. The case is under investigation.