Mumbai, February 25: The Haryana State Vigilance and Anti-Corruption Bureau (ACB) achieved a breakthrough on Wednesday, February 25, by arresting four individuals, including the alleged masterminds behind the massive INR 590-crore banking fraud. The scam, which targeted Haryana government funds deposited at IDFC First Bank's Chandigarh branch, has led to the de-empanelment of the lender by the state and sent shockwaves through the banking sector.

The arrests follow a swift 24-hour operation by a Special Investigation Team (SIT) after the fraud was officially reported. Among those taken into custody are two former bank employees and two private individuals who allegedly operated a shell company to siphon off the funds. IDFC First Bank Fraud News: Staff Collusion Suspected in INR 590 Crore Haryana Govt Account Fraud.

Masterminds Behind the IFDFC First Bank Fraud and Their Modus Operandi

The prime accused have been identified as Ribhav Rishi, the former head of the bank's Sector 32 branch in Chandigarh, and Abhay Kumar, a former relationship manager at the same branch. Both individuals had resigned from their positions several months prior to the discovery of the fraud. According to the ACB, the duo orchestrated a sophisticated scheme to divert government deposits into a private partnership firm called Swastik Desh Projects. This company is reportedly owned by Abhay Kumar's wife, Swati Singla, and her brother, Abhishek Singla, both of whom were also arrested. Investigators revealed that nearly INR 300 crore was funnelled directly into this firm's accounts before being moved further to avoid detection.

How the IDFC First Bank Scam Unfolded

The irregularities came to light during a routine audit when the Haryana Development and Panchayats Department attempted to close its accounts and transfer funds to a nationalised bank. The department noticed a significant discrepancy: while their records showed a balance of over INR 50 crore, the bank reflected only a fraction of that amount.

The investigation revealed a series of procedural lapses and criminal acts:

Forged Documents: The accused allegedly cleared forged cheques and payment instructions, bypassing the bank's internal "maker-checker" security protocols.

Unauthorised Transactions: Funds meant for the Mukhya Mantri Gramin Awas Yojana-2.0 were moved without government approval.

System Manipulation: Investigators suspect that the suspects manipulated system-triggered SMS and email alerts to ensure the government department did not receive notifications of the unauthorised withdrawals.

Government and Bank Response

The Haryana government has taken a hardline stance, immediately de-empanelling both IDFC First Bank and AU Small Finance Bank from handling state business. Chief Minister Nayab Singh Saini informed the State Assembly that the government has already recovered approximately INR 583 crore (including interest) from IDFC First Bank, which the lender repaid within 24 hours of the disclosure to protect its reputation. IDFC First Bank MD and CEO V. Vaidyanathan described the incident as an "isolated case of internal collusion" rather than a systemic failure. The bank has suspended four current officials and appointed the global forensic firm KPMG to conduct an independent investigation, expected to conclude within five weeks. Why Did IDFC First Bank Stock Crash 20% Today, February 23?

Current Status of the Case

The four accused have been booked under sections of the Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act, relating to criminal breach of trust, cheating, and forgery. A Look Out Circular (LOC) had previously been issued against Ribhav Rishi to prevent him from fleeing the country. While the primary funds have been restored to the state treasury, the ACB continues to trace the final destination of the siphoned money. The opposition has demanded a CBI probe into the matter, citing concerns over the scale of the misappropriation and the involvement of multiple government departments.

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