IDFC First Bank Fraud: Full ₹556 Crore Recovered, Haryana CM Confirms in Assembly

₹556 Crore, Including Interest, Returned Within 24 Hours​

Chandigarh, February 24: Haryana Chief Minister Nayab Singh Saini informed the Assembly on Tuesday that the entire amount involved in the fraud linked to state government accounts at the IDFC First Bank branch in Chandigarh has been fully recovered and credited back to the government.

Addressing the House, the Chief Minister stated that a total of ₹556 crore, including ₹22 crore as interest, was returned to the government account within 24 hours.

He also revealed that the involvement of four to five employees of the bank’s Chandigarh branch has come to light.

“No one, whether a bank employee, a private individual, or a government official, will be spared in this case,” Saini said.

Committee Formed to Probe IDFC First Bank Fraud​

The Haryana government has constituted a committee headed by the Finance Secretary to conduct a comprehensive investigation into the matter.

According to the Chief Minister, the committee will examine the entire episode and submit recommendations to prevent similar incidents in the future.

He assured the Assembly that the governance system in the state ensures accountability of every rupee of public money.

₹590 Crore Fraud Identified by Bank in Exchange Filing​

Earlier, IDFC First Bank had identified fraudulent activities amounting to ₹590 crore at its Chandigarh branch in an exchange filing.

The Chief Minister informed the House during the Budget Session of the Vidhan Sabha that the bank had written to SEBI on February 21, acknowledging irregularities committed by certain employees. The bank has initiated action against those involved.

However, Saini said that even before the government formally took cognisance of the issue, it had already de-empanelled the bank on February 18 and directed that the entire amount, along with interest, be transferred to a nationalised bank.

FIR Registered Under Prevention of Corruption Act and BNS​

The state Vigilance and Anti-Corruption Bureau has registered an FIR against bank officials, public servants, and other individuals.

The case has been filed under Section 13(2) of the Prevention of Corruption Act and Sections 316(5), 318(4), 336(3), 338, 340(2) and 61(2) of the Bharatiya Nyaya Sanhita.

Opposition Demands CBI Probe​

The issue triggered protests outside the Assembly by the opposition Congress. State Congress President Rao Narendra Singh described the matter as a scam exceeding ₹590 crore and demanded a CBI investigation, alleging involvement of major players.

Fraud Detected After Record Mismatch​

A day earlier, the Chief Minister had informed the House that the fraud was detected due to the alertness of state government departments. The issue surfaced when statements provided by the bank did not match records maintained by the concerned departments.

Following this, directions were issued to form a high-level committee for a detailed probe.

Saini also clarified that a significant portion of government funds deposited with the bank had been invested in fixed deposits. He noted that the practice of departments maintaining funds in empanelled banks is not new and has been followed earlier as well, with banks being empanelled from time to time.

With the full recovery of funds and an ongoing investigation, the Haryana government has moved to tighten oversight of departmental deposits and banking arrangements.