IndusInd Bank’s former chief financial officer (CFO) Gobind Jain has urged the Centre to suspend and initiate an independent probe against Sunil Mehta, the chairman of the lender’s board.

Jain, who has alleged Mehta’s involvement in covering up accounting irregularities in the bank, offered to hand over supporting documents to any official nominated by the government authorities, the Economic Times reported. 

Jain had resigned as the CFO of the bank in January, a couple of months before the lender disclosed that it has found accounting discrepancies in its derivatives portfolio. 

In a letter to the Prime Minister dated 26 August, Jain claimed that he uncovered serious issues in treasury operations at the bank that had persisted for more than a decade. Jain said he was the only executive to detect the lapses and had fought a “lone battle” to highlight them, the Economic Times further reported.

Jain said in the letter that Mehta and his close aides created an "atmosphere of fear" within IndusInd Bank and targeted him “financially and emotionally” for exposing the problem while shielding those responsible, the financial daily reported, adding that employees who supported Jain were also being singled out.

He said he remains fearful but expressed faith in the prime minister’s office to ensure a fair inquiry.

Jain also alleged that statutory and forensic auditors had produced reports dictated by the board in exchange for hefty fees, while regulators such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) had refrained from intervening directly, the newspaper reported.

Jain has alleged that despite auditors and consultants being engaged, findings were shaped to protect the board. He questioned why the chairman, risk committee members and senior executives continued in office even as losses of about Rs 2,000 crore surfaced. He maintained that the resignation of the CEO and other officials months after his own exit did little to bring accountability, Economic Times further reported.

IndusInd Bank has, however, denied all allegations made by Jain, calling them baseless and motivated. The bank in a statement to the newspaper said its board had promptly disclosed accounting discrepancies in derivatives, microfinance and other revenue streams to stock exchanges in March–May 2025, appointed external agencies for independent investigations, reported suspected frauds to the RBI and filed complaints with the SFIO and Mumbai EOW. 

The bank urged the ministry to dismiss Jain’s complaint, arguing that the board acted diligently and transparently, while Jain is attempting to obstruct ongoing probes, the Economic Times reported.

In March, the Hinduja-promoted bank disclosed that it suspected accounting lapses which could have a negative impact of 2.35% of the bank’s net worth as of December 2024.