IndusInd Bank Under SFIO Scanner: MCA Orders Probe Citing Public Interest

• MCA has ordered a Serious Fraud Investigation Office (SFIO) probe into IndusInd Bank due to public interest and serious accounting irregularities.
• The probe follows ADT-4 forms filed by statutory auditors, flagging discrepancies of ~Rs 1,959.78 crore from FY2015-16 to FY2023-24, and weaknesses in internal controls.
• SFIO will investigate alleged manipulation of books, fictitious accounts, fund diversion, and impact on financial statements, including related-party transactions and loans.
• Separately, Mumbai Police’s EOW found no evidence of fund siphoning or diversion in its preliminary enquiry and plans to close the case.
• IndusInd Bank previously disclosed a Rs 1,979-crore lapse in its derivatives portfolio, including misstatements in income and balances, but stated it could absorb the impact.

Why It Matters: MCA orders SFIO probe into IndusInd Bank for accounting irregularities, while EOW finds no fraud.