Gurugram MCG transfers ₹108 crore from IDFC First Bank

The Municipal Corporation of Gurugram (MCG) has withdrawn ₹108 crore from IDFC First Bank, transferred the money to a government bank and closed its account with the private lender.

An MCG official said the funds came from the sale of civic land and will be credited to the urban local body account under the latest policy for municipal land-sale proceeds. The official said MCG took the step after concerns emerged over an alleged ₹590-crore discrepancy involving government deposits.

The discrepancy was detected during the closure and reconciliation of accounts linked to Haryana government departments at IDFC First Bank’s Chandigarh branch. The bank suspended four officials and lodged complaints with police and regulators.

Haryana has de-empanelled IDFC First Bank and AU Small Finance Bank for government business, directing departments to close or shift accounts held with private banks to nationalised lenders. The state Anti-Corruption Bureau and Vigilance Department registered an FIR, while Chief Minister Nayab Singh Saini ordered a high-level inquiry.

Saini told the Assembly that nearly ₹556 crore, including about ₹22 crore in interest, had been recovered within 24 hours.