On the lines of IDFC First and AU Small Finance Bank frauds, the Haryana Government has detected a scam in Kotak Mahindra Bank. There is a mismatch of over Rs 150 crore in the Municipal Corporation (MC), Panchkula, and bank records.Haryana Chief Secretary Anurag Rastogi, who heads the Vigilance Department, has sent a letter to the State Vigilance and Anti-Corruption Bureau (SV&ACB) to initiate a case and begin further investigation.Sources said the Panchkula MC had deposited the amount at the Kotak Mahindra Bank branch in Sector 11, Panchkula. Recently, when officials approached the bank about the maturity of a fixed deposit (FD) worth Rs 58 crore, they were told it did not exist.Upon checking all accounts, it was found that the discrepancies exceeded over Rs 150 crore.Officers in the state government told The Tribune that the fraud could not have happened without the involvement of senior bank officials. Collusion between Panchkula MC officials and bank employees could not be ruled out either, they added.Meanwhile, it is learnt that Kotak Mahindra Bank also conducted a reconciliation of the Panchkula MC accounts after the urban local body raised concerns. After days of auditing, a multi-crore gap was revealed. The bank’s legal team contacted the Panchkula Police for an FIR, but it was told that the SV&ACB would investigate the scam.IDFC First Bank and AU Small Finance Bank fraudsEarlier in February, the IDFC First Bank and AU Small Finance Bank scam involving 12 accounts of eight Haryana Government departments came to light. Accounts of the Chandigarh administration were also involved. The amount involved in the scam was claimed to be Rs 590 crore.The SV&ACB registered an FIR on February 23 and is investigating the case. The probe so far uncovered that the accused manipulated banking records by preparing fake debit memos or transferring funds without any valid debit memo or cheque authorisation. Forged bank statements were prepared to facilitate the transfer of funds to multiple accounts directly or indirectly linked to the accused and their relatives. About 15 accused have been arrested in the case, including top government officials.Some of the fictitious companies identified during the probe which received over Rs 250 crore include Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd and Swastik Desh Project. Six luxury vehicles, including three Toyota Fortuners, two Innovas and one Mercedes, which are suspected to have been purchased from illicit proceeds, have been seized. Furthermore, over 100 bank accounts suspected to be linked to the fraudulent transactions are under the scanner.Of the 12 bank accounts which were defrauded, 10 were maintained at IDFC First Bank and two at AU Small Finance Bank.After the fraud, on February 18, the Haryana Finance Department issued instructions authorising the administrative secretaries to approve the opening of bank accounts for schemes or projects when such accounts are proposed to be opened with nationalised banks operating in the state.In cases where a department proposes to open a bank account with any corporate or private sector bank, prior approval from the Finance Department (Institutional Finance & Credit Control) is now mandatory. Even for this, a proper justification is required for not opening the account in a nationalised bank.IDFC First Bank and AU Small Finance Bank were also de-empanelled for government business in Haryana after the fraud. The Finance Department has instructed that no government funds shall henceforth be parked, deposited, invested, or transacted through these banks.