In Shorts
- Massive ₹590 crore fraud uncovered at IDFC First Bank’s Chandigarh branch linked to Haryana government accounts.
- Four individuals including a former branch manager and bank staff arrested by Haryana Anti-Corruption Bureau.
- Funds reportedly recovered and authorities launch forensic audit to trace diverted money.
Chandigarh witnessed a major financial upheaval after IDFC First Bank disclosed a suspected ₹590 crore fraud linked to several government accounts held at its Sector 32 branch. The startling disclosure has sparked an official investigation by the Haryana State Vigilance and Anti-Corruption Bureau and led to multiple arrests.
According to law enforcement sources, the alleged scheme involved manipulating account records tied to Haryana government departments, with discrepancies surfacing when a government office sought to close its accounts and transfer funds elsewhere. Inconsistencies between the actual bank balances and recorded figures prompted a deeper review, ultimately unearthing the large-scale financial anomaly.
Arrests and Investigation
On February 25, authorities arrested four individuals in connection with the case. Among those taken into custody were Ribhav Rishi, a former branch manager, and Abhay Kumar, an ex-employee of the bank. Also arrested were two private individuals believed to be linked to the diversion of funds. Law enforcement had earlier issued Look Out Circulars to prevent the primary suspects from leaving the country as the probe intensified.
The Haryana Anti-Corruption Bureau’s FIR alleges unauthorized transactions and possible forgery involving government funds. A special investigation team has been formed to trace the money trail which is thought to have passed through multiple accounts and entities before detection.
Government Response and Recovery
Haryana Chief Minister Nayab Singh Saini addressed the state assembly, affirming that the entire amount linked to the alleged fraud had been recovered and returned to government accounts. He described the funds as public money and vowed stringent action against all involved.
As part of administrative fallout, both IDFC First Bank and AU Small Finance Bank were removed from the list of authorised banks for handling Haryana government business. Some departments have already begun transferring their deposits to nationalised banks amid concerns over financial oversight.
Broader Impact and Market Reaction
The disclosure of the fraud has not only triggered legal action but also rattled investor confidence. IDFC First Bank’s shares saw a significant drop as markets reacted to the allegations and the risks they pose to governance and operational controls.
The bank says that the irregularity appears restricted to a specific set of government-linked accounts and has assured customers that other deposits remain secure. Independent forensic auditors are expected to further evaluate how internal controls were bypassed and to recommend stronger safeguards going forward.
What Comes Next
Authorities continue to comb through hundreds of transactions to pinpoint how funds were diverted without proper authorization. Additional arrests and regulatory actions could follow as the investigation evolves and the forensic audit sheds more light on internal lapses at the branch.
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