A new revelation has emerged in the investigation of the IndusInd Bank accounting lapses case. The initial investigation by the Mumbai Police’s Economic Offences Wing (EOW) has found that the bank’s top management officials at the time admitted to adjustments being made in the accounting books. This case is linked to irregularities of approximately ₹2,000 crore.

According to sources, last week the EOW recorded the statements of the bank’s former CFO, the former Deputy CEO, and the former CEO. The Deputy CEO was later summoned again. Sources connected to the investigation say the Deputy CEO’s role is extremely important because he was aware of the changes and adjustments that were allegedly made in the bank’s books.

Also Read:

It is alleged that these adjustments artificially inflated the bank’s share price and some top management officials at the time used this information to benefit from insider trading. It is reported that they earned hundreds of crores of rupees through this process.

Former Officials Denied Allegations of Irregularities

The EOW learned during questioning of several employees and former officials that the bank’s books were adjusted under two different headings, which impacted the stock price. However, some former officials say they did not participate in any kind of irregularity.

According to sources, the EOW will soon seek opinions from legal authorities and financial experts on what further action to take. A senior official connected to the investigation also said this case resembles the Satyam scam in many ways.

CEO and Deputy CEO Resigned in April

The bank had initially discovered these accounting lapses in its derivatives portfolio, but it later spread to the microfinance business. Following the revelation of this case, the CEO and the Deputy CEO resigned in April 2025.

Also Read:

So far, the EOW has recorded statements from seven to eight employees. Based on the employees’ statements, summons were sent to the bank’s former top officials. It is possible these officials could be called again.

Meanwhile, the former CFO had previously also alleged irregularities related to the treasury. On August 26, he wrote a letter to the Prime Minister’s Office stating that serious irregularities have been occurring in the bank’s treasury operations for over a decade, amounting to approximately ₹2,000 crore.

IndusInd Bank

IndusInd Bank is an Indian private sector bank founded in 1994, named after the Indus Valley civilization to reflect a modern institution with ancient roots. It was established to cater to the needs of consumer finance and has since grown into a full-service commercial bank. The bank has expanded its services and network significantly through technological adoption and mergers, such as its amalgamation with Bharat Financial Inclusion in 2019.

Mumbai Police’s Economic Offences Wing

The Mumbai Police’s Economic Offences Wing (EOW) is a specialized unit established to investigate complex financial crimes such as fraud, forgery, and large-scale embezzlement. It was created to address the growing sophistication of white-collar crime in India’s financial capital. The EOW plays a crucial role in protecting the economic interests of the public and the state by tackling cases that require specialized financial and investigative expertise.

Satyam scam

The Satyam scam refers to a 2009 corporate fraud scandal in India, where the founder of Satyam Computer Services admitted to falsifying the company’s accounts by over $1 billion. This massive financial deception, one of India’s largest, involved inflating revenue and creating fictitious assets, severely shaking investor confidence. The scandal led to major reforms in India’s corporate governance and auditing regulations.

Prime Minister’s Office

The Prime Minister’s Office is the central administrative headquarters for the head of government, coordinating policy and government business. Historically, in the United Kingdom, its functions were traditionally carried out within the Cabinet Office until a distinct entity was formally created in 1916 to support the demands of the First World War. It now serves as the primary base for the Prime Minister and their senior staff.