The Haryana government on Wednesday ordered de-empanelment of Kotak Mahindra Bank, which is under investigation for alleged siphoning off government funds, for conducting government business in Haryana with an immediate effect and until further orders.
Investigations are on against Kotak’s employees for alleged embezzlement of funds of Panchkula municipal corporation. “Accordingly, no government funds shall henceforth be parked, deposited, invested, or transacted through the said bank,” said an order issued by the finance secretary.
The de-empanelment order said that officials are requested to take immediate action to transfer balances from accounts maintained with the said bank and to initiate closure of such accounts at the earliest. Compliance of these instructions may be ensured in letter and spirit, the order said.
The finance department had on February 18 de-empanelled IDFC First Bank and AU Small Finance Bank from doing government business following detection of large scale financial wrongdoings involving government funds by the two banks.