Panchkula, March 26 -- A month after a Rs.590-crore fraud involving Haryana government funds surfaced at IDFC First Bank's Chandigarh branch, the state vigilance and anti-corruption bureau (ACB) has registered an FIR over discrepancies in fixed deposits worth Rs.145 crore in the Panchkula Municipal Corporation (MC) accounts maintained with Kotak Mahindra Bank. The ACB also arrested the bank's relationship manager, Dileep Kumar Raghav, who allegedly sent false reports to the MC regarding the FDs in connivance with the key accused. The FIR, lodged on directions of the Haryana chief secretary's office, relates to alleged irregularities in MC accounts at the bank's Sector 11 branch. Inspector Rakesh Kumar of the vigilance department is the complainant. The case has been registered against employees of Kotak Mahindra Bank and other unknown persons under sections of the Bharatiya Nyaya Sanhita pertaining to criminal breach of trust, cheating, forgery and criminal conspiracy, along with provisions of the Prevention of Corruption Act. The development comes weeks after the Chandigarh Municipal Corporation discovered similar financial irregularities in the accounts of the now-defunct Chandigarh Smart City Limited at IDFC First Bank, during a review of investments triggered by the Haryana case. A spokesperson for Kotak Mahindra Bank said reconciliation was initiated as per MC instructions, adding that account opening procedures, KYC documentation and authorised signatories were in order, and that transactions were conducted in compliance with banking norms. The bank said a significant portion of discrepancies had already been reconciled. It had also filed a complaint with the Panchkula police and was cooperating with authorities, the spokesperson added. Police officials said further investigation was underway to determine whether fraud or procedural lapses led to the discrepancies and to fix accountability....