Mumbai: Fresh Revelations Emerge in IndusInd Bank Irregularities

A fresh revelation has emerged in the IndusInd Bank accounting lapse case involving alleged irregularities worth nearly ₹2,000 crore. The Economic Offences Wing (EOW) of Mumbai Police, during its preliminary probe, found that some of the then top management officials admitted to having made adjustments in the bank’s accounting books.

According to sources, last week the EOW recorded the statements of former CFO Gobind Jain, former Deputy CEO Arun Khurana, and former CEO Sumant Kathpalia. Khurana has since been summoned again, as investigators believe his role is crucial, given his awareness of the alleged accounting adjustments.

Investigators suspect that these adjustments artificially boosted the bank’s share prices, enabling certain senior officials to profit through insider trading. It is alleged that some of them made hundreds of crores of rupees by exploiting this information.

During questioning of several employees and ex-officials, the EOW learnt that the bank’s accounts were adjusted under two separate headers, which impacted stock valuations. While a few former executives denied involvement in any wrongdoing, investigators are examining conflicting claims.

Sources said the EOW will soon consult legal authorities and financial experts to decide the next course of action.

The accounting lapse was initially detected in the bank’s derivatives portfolio before extending to its microfinance business. Following the revelations, CEO Sumant Kathpalia and Deputy CEO Arun Khurana resigned in April 2025.

So far, the EOW has recorded statements of seven to eight employees, based on which summons were issued to former top executives. Officials said these executives may be called again for further questioning.

Meanwhile, former CFO Gobind Jain had earlier raised red flags over treasury-related irregularities. On 26 August, he wrote to the Prime Minister’s Office alleging decade-long violations in the bank’s treasury operations, estimating irregularities of around ₹2,000 crore.