Haryana recommends CBI probe in Rs 590 crore IDFC First Bank fraud; Kotak Mahindra bank official named in another scam

On March 24, the SV & ACB lodged a separate FIR in this case against unnamed officials of Kotak Mahindra Bank after Panchkula Municipal Corporation reported discrepancies worth nearly Rs 150 crore in its fixed deposit receipts. Two people, including a relationship manager of the bank, Dalip Kumar Raghav, have been arrested in this case so far.

On Monday, the vigilance bureau informed a Panchkula court: “In the preliminary investigation of the case, the name of Deputy Vice President Pushpender Singh had emerged. It has come to knowledge that Raghav had full information about this. During the investigation, a team was sent to the bank. Raghav told the vigilance team in‑charge that he knows the home and whereabouts of Pushpender and would help in his arrest.”

Meanwhile, the bank on Monday returned Rs 127 crore to the Panchkula Municipal Corporation, whose funds were siphoned off in the alleged scam. A bank spokesperson said: “As the reconciliation relating to fixed deposits and linked bank accounts of the Municipal Corporation of Panchkula has progressed, certain discrepancies have been identified that may affect both the Bank and the Municipal Corporation and are currently under examination. In this context, and given the Bank’s long-standing relationship with government institutions, Kotak Mahindra Bank has placed an amount of Rs 127 crore with the Municipal Corporation, while the investigation continues.”

The spokesperson added, “Kotak Mahindra Bank and the Municipal Corporation are working closely with the relevant authorities to establish the facts and address the matter appropriately. The Bank continues to operate normally and there is no impact on customer services.”

How the IDFC First Bank fraud came to light

According to the SV & ACB, the prime accused in the IDFC First Bank fraud case created several fake firms and companies to illegally divert government funds into multiple bank accounts. So far, 15 individuals, including several bankers and four Haryana government officials, have been arrested in the case. All the accused have been sent to judicial custody.

The authorities have also seized six luxury vehicles, including three Toyota Fortuners, two Innovas, and one Mercedes, suspected to have been purchased from illegal proceeds. Requests have also been sent to freeze over 100 bank accounts linked to the fraudulent transactions.

SV & ACB Director General A S Chawla said that the investigation is likely to continue for a long time.

On September 26, 2025, the Haryana Development and Panchayats Department opened two accounts: one at IDFC First Bank with Rs 50 crore, and another at AU Small Finance Bank with Rs 25 crore. Several departments had been parking their funds in IDFC First Bank, often as one‑year fixed deposits.

When a senior officer sought withdrawal of Rs 50 crore deposited under the Mukhyamantri Gramin Awas Yojana scheme, bank officials told the panchayats department that the funds were insufficient. Following a departmental inquiry, the SV & ACB lodged an FIR and arrested department superintendent Naresh Bhuwani.

Initial arrests included Ribhav Rishi, a former branch manager at IDFC First Bank, and Abhay Kumar, a former relationship manager. Abhay’s wife, Swati Singla, and her brother, Abhishek Singla, were also taken into custody. Investigations revealed that nearly Rs 300 crore was allegedly funnelled into the account of Swastik Desh Projects, a company owned by Swati and Abhishek.

On March 19, IPS officer and Special Investigation Team (SIT) member Medha Bhushan told the court, “Arun Sharma who was regional head in AU Small Finance Bank also assisted key accused and former IDFC staffers Ribhav Rishi and Abhay Kumar in carrying out illegal activities as alleged in the matter.” She added, “Investigation has revealed he (Sharma) sent forged bank statements and received approximately Rs 10 crores for carrying out illegal activities in connivance with co‑accused. He received Rs 2 crores in his bank account.”