Haryana recovers ₹578cr from IDFC First Bank fraud case
What's the story
Haryana Chief Minister Nayab Singh Saini has announced that ₹578 crore has been recovered from IDFC First Bank within 24 hours. The amount includes the principal sum of ₹556 crore and interest of ₹22 crore. The recovery comes after a suspected multi-crore fraud involving state government accounts and IDFC First Bank was detected at its Chandigarh branch.
CM
Stern action will be taken, says CM
Speaking after the Question Hour during the Budget Session on Tuesday, CM Saini said, "The bank has apprised us that only one branch of Chandigarh, in which four-five middle-level employees of the bank connived with certain people and executed this scam." "The government will conduct a thorough probe into all this. Be it government officials, bank officials, or private entities, anybody found involved will not be spared at any cost. Stern action will be taken against all those found responsible."
Fraud discovery
Fraud detected when department tried to close account
The fraud was first detected when a state department tried to close its account and transfer funds. Discrepancies were found between the recorded balances and actual funds available. Further checks revealed similar inconsistencies in other government-linked accounts at the same branch, with initial estimates of the fraud being around ₹590 crore.
Institutional response
IDFC First Bank files police complaint about suspected fraud
IDFC First Bank has also informed the banking regulator and filed a police complaint about the suspected fraud. The bank alleged that some employees at its Chandigarh branch carried out unauthorized transactions in collusion with other entities. In light of these revelations, the Haryana government has immediately de-empaneled IDFC First Bank from government business. Four employees at IDFC First Bank have been placed under suspension pending investigation.