IDFC Rs. 590 crore fraud case: Anybody found guilty will not be spared, Haryana CM Nayab Singh tells House

Issue in Budget Session

The issue of alleged IDFC First Bank fraud was raised by Leader of Opposition Bhupinder Singh Hooda during Zero Hour of the ongoing Budget Session.

Responding to Hooda, Saini said, “A thorough probe is underway to determine accountability and establish whether any government employees, bank officials, or other individuals were involved. Be it any bank official, government employee, or anyone else, stern action will be taken. If the bank is found responsible, strict action will be taken against the bank as well. Banks must maintain their credibility, but the accountability will extend to all parties found guilty once the investigation concludes,” Saini said.

Hooda, however, questioned Saini, saying that the bank is “quite active”. “It has suspended its employees. What is the state government doing? Why haven’t we been able to identify the culprits?”

Countering Hooda, Saini said the government had already initiated the probe a few days ago, “the moment the issue had come to our notice”. “I would again assure the House that each and every person responsible shall be taken to task”.

Saini said the state government uncovered the alleged financial irregularities involving funds deposited across multiple bank accounts, including significant fixed deposits, held with IDFC First Bank. He said officials confirmed that “approximately Rs. 450 crore was kept in fixed deposits, with additional amounts parked in other accounts”.

“Funds belonging to three to four departments were maintained in accounts with IDFC Bank. Discrepancies came to light during an internal review, prompting authorities to seek detailed statements from the concerned departments. When we found discrepancies, we sought statements from the departments involved. There was a clear mismatch. We have caught this fraud and are keeping a close watch on every related issue.”

The Haryana chief minister said the government de-empanelled the bank on February 18.

“Following the discovery, the government decided to withdraw the entire amount from the bank and transfer it to another financial institution as a precautionary measure. The funds remain secure. Wherever our money has been transferred, each and every penny shall be recovered, and it shall be recovered with interest”.

In a communication to the National Stock Exchange (NSE), the IDFC First Bank said Saturday that it had identified an incident involving unauthorised and fraudulent activities by certain employees at the branch and “potentially involving other individuals/entities/counterparties”.

The bank said certain “discrepancies were observed in the amount mentioned vis-à-vis the balance in an account after the Bank received a request from a Haryana government department for closure of its account and transfer of funds to another bank”.

On Monday, IDFC First Bank’s shares tanked 10 per cent to Rs 75.21 apiece at the market open.