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IndusInd Bank's former Chief Financial Officer (CFO) Gobind Jain has urged the Centre to suspend the bank’s Chairman Sunil Mehta, accusing him of concealing accounting discrepancies.
In a letter to the Prime Minister’s Office (PMO), Jain sought government intervention and called for an independent investigation. The bank has strongly denied the charges.
The former CFO’s allegations, first reported by The Economic Times, come months after the private-sector lender admitted to lapses in its derivatives portfolio. CNBC-TV18 has independently reviewed the letter sent by Jain to the PMO.
Speaking to CNBC-TV18, Jain said he was compelled to write to the PMO in August, claiming the bank is “building a false case” against him and planning to file complaints with enforcement agencies.
“I was CFO of the Bank and Joined on September 30, 2021. During the course of my service, I came across serious issues in the Treasury area of the Bank which was going on for last 10 years. I was the only person who could discover this and fought a lone battle to highlight the same,” Jain wrote in his letter dated August 26, 2025, which CNBC-TV18 has reviewed.
He further alleged, “Chairman (Sunil Mehta) and his trusted colleagues have created an atmosphere of fear in the Bank, and they are supporting people who were actively involved. Employees who helped are also being targeted. Request you to suspend at least this chairman and order an independent investigation.”
In the same letter, Jain claimed he was being victimised. “They have targeted me both financially, emotionally, and I am really scared now…. Even the statutory auditors, forensic auditors are writing anything against anyone as dictated by Board after taking hefty fees.”
Jain told CNBC-TV18 he was being wrongfully accused of a cover-up. “I was the only person who highlighted the issue (on accounting discrepancies), and now they are targeting me, saying that I knew about it, and I was trying to cover it up.”
He said suspicions first arose in late 2023, but he did not have enough evidence to go to the board. “I started having suspicions in end-2023, and highlighted it internally. Did not have evidence to go to board yet. When I started collecting evidence, they started targeting me,” he told CNBC-TV18
“I had to write to the Prime Minister as there was no way out. I am being targeted emotionally and financially,” he said.
He also alleged that although he resigned in January, the bank has not formally relieved him, preventing him from taking up another role.
CNBC-TV18 could not independently verify his allegations.
IndusInd Bank’s Response
In its written reply to the PMO on September 1, 2025, IndusInd Bank dismissed Jain’s charges as unfounded. “The allegations made by the Complainant in the Complaint are completely baseless and without merit, and the records of the Bank clearly establish that. When Accounting Issues were brought to the attention of the Board, the Board has acted diligently, decisively, and transparently, in the interest of the Bank and its shareholders, and all actions of the Board are in compliance with law and the Bank’s internal policies, and any assertions or allegations by the Complainant to the contrary are wholly incorrect and motivated.”
IndusInd Bank argued that Jain himself failed in his responsibilities, “From the investigation report, it appears that while the Complainant was aware of the Derivative Accounting Issue as early as November/ December 2023. As the CFO, he was responsible for the correctness of the financial statements of the Bank and approving the same before they were presented to the Board. However, not only did he fail to report this to the Board or the Audit committee, he had also signed off on the financial statements of the Bank and certified that the financial statements do not contain any false or misleading statements.”
The Bank further accused Jain of attempting to derail ongoing proceedings. “The Complaint is a deliberate attempt…to obstruct and detract from both the ongoing investigations by the law enforcement agencies and the disciplinary proceedings being conducted by the Bank, including in respect of the Complainant.”
IndusInd Bank also separately issued a press statement on Thursday, said: “The Bank categorically rejects these allegations against the Board Chairman and others, which are completely devoid of merit and an attempt to deflect due process of law and accountability. The Board has collectively taken decisions to address incidents of gross irregularity, suspected fraud and dereliction of duty that were brought to the attention of the Board. The Bank has made disclosures in a fair and transparent manner based on investigations conducted by independent internal and external experts.”
The controversy follows a difficult year for IndusInd. In March this year, the bank disclosed that accounting lapses in its derivatives portfolio could impact 2.35% of its net worth as of December 2024. The revelation sparked a market rout, with the stock plunging 26% in a single day and erasing significant investor wealth.
The fallout prompted the resignation of then-CEO Sumant Kathpalia and the then-Deputy CEO Arun Khurana in April. Since then, former Axis Bank Deputy Managing Director Rajiv Anand has taken charge as Managing Director and CEO, and Pragati Gondhalekar has recently been appointed head of internal audit in a leadership reshuffle aimed at restoring confidence.
