Mumbai Police finds no evidence of wrongdoing by former IndusInd Bank executives

The Mumbai Police Economic Offences Wing (EOW) has found no evidence of criminal conduct by former executives of IndusInd Bank in connection with the ₹1,950 crore and ₹258 crore accounting discrepancies that were under investigation.

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According to sources cited by CNBC-TV18, the EOW’s probe has revealed that the ₹1,950 crore figure-initially reported earlier this year and which led to a sharp decline in the bank’s stock—was the result of a genuine accounting error rather than any case of fund diversion or manipulation.

The agency had also examined another ₹258 crore entry flagged in an audit report by Grant Thornton, which suggested that the amount may have been selectively used to boost the bank’s net interest income in certain quarters when results lagged expectations. However, investigators have now found no evidence of any irregularity or siphoning of funds in that instance either.

“We have written to the banking regulator regarding a couple of queries that we had. Based on their reply, we will come to a conclusion. There is currently no further enquiry we are doing. No criminal conduct found so far,” an EOW official told CNBC-TV18.

The EOW had earlier questioned several former top executives, including ex-Managing Director and CEO Sumant Kathpalia, former Deputy CEO Arun Khurana, and CFO Gobind Jain, but has since ruled out any wrongdoing.

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Mumbai Police has also sought clarification from the Reserve Bank of India (RBI) on a few technical points before formally closing the preliminary enquiry. With no evidence of criminality or fund siphoning established, the EOW is expected to conclude the probe soon. Sources indicate that there is no basis or evidence to register an FIR in the matter.