IDFC First Bank Returns ₹583 Crore to Haryana Government

IDFC First Bank Pays ₹583 Crore to Haryana Government After ₹590 Crore Fraud at Chandigarh Branch​

Bank Clears Principal and Interest Amid Ongoing Investigation​

New Delhi, February 24: IDFC First Bank has paid ₹583 crore to the relevant departments of the Haryana government, covering 100 percent of the principal and interest claimed in connection with a recently disclosed fraud case.

In a regulatory filing on Tuesday, the private sector lender confirmed that despite the ongoing investigation, it has settled the full amount owed. The net payout of ₹583 crore includes both the principal and applicable interest.

The bank stated that it remains committed to cooperating with Haryana government departments and law enforcement agencies to take action against those responsible and to recover its dues.

Haryana Government Confirms Recovery Within 24 Hours​

Earlier in the day, Haryana Chief Minister Nayab Singh Saini informed the Assembly that nearly ₹556 crore had been recovered in the IDFC First Bank case.

“Nearly ₹556 crore, including nearly ₹22 crore in interest, has been recovered within 24 hours,” Saini said in the House.

He further clarified that the money related to Haryana government departments had been fully deposited back into official accounts within a day of the discovery.

Fraud Confined to Chandigarh Branch​

On Sunday, IDFC First Bank disclosed that a ₹590 crore fraud had been committed at a specific branch in Chandigarh. The incident involved certain employees and others linked to government-related accounts of the Haryana state government.

According to the chief minister, four to five bank employees from middle and lower ranks were involved in the scheme. He emphasized that anyone found responsible, whether a bank employee, private individual, or government official, would face strict action.

The bank clarified that the fraud was confined to a specific group of government-linked accounts operated through the Chandigarh branch and did not impact other customers of the branch.

Discrepancies Detected During Account Closure Process​

The issue surfaced when a Haryana government department requested the closure of its account at the Chandigarh branch and the transfer of funds to another bank.

During the process, the bank identified discrepancies between the balances recorded in the account and those mentioned by the department. An initial discrepancy of ₹490 crore was observed, followed by the identification of an additional ₹100 crore, taking the total to ₹590 crore.

Government De-Empanels Two Banks​

Following the episode, the Haryana government de-empaneled both IDFC First Bank and AU Small Finance Bank from undertaking any government business, citing alleged fraudulent opening of accounts.

The investigation into the matter remains ongoing, even as the full amount claimed by the Haryana government has now been repaid.