IDFC First Bank scam probe zooms in on 391 transactions, 170 accounts

Haryana Police officers probing the case have asked the suspects, primarily bank employees currently under suspension, to join the investigation. One of the key suspects is “untraceable” and is suspected to have left the country, sources said.

Detailing the scam, sources said IDFC First Bank, like other public and private sector banks, had been empanelled to park state government funds as fixed deposits (FDs), typically for a one-year period.

IDFC was among the banks offering higher interest rates, around 7.5 per cent, sources said. Of the total amount involved, around Rs 450 crore was deposited as FDs by various government departments, while the remaining funds were held in other formats.

“Recently, when officials of one of the departments checked the status of their FDs, they found the account empty even though they were holding physical copies of the FDs. The matter was first reported to senior officers in the government in January. Other departments also rushed to check their accounts. They too did not find the amounts against their FDs. We suspect that money has been diverted elsewhere,” a senior officer told The Indian Express.

Officials believe similar diversions may have occurred earlier. “In the past, suspects might have managed to settle accounts by transferring money between departments, but this time several departments simultaneously asked for their funds, which exposed the fraud,” an official said.

In a communication to the National Stock Exchange (NSE) on Saturday, the bank said certain “discrepancies were observed in the amount mentioned vis-à-vis the balance in an account” after it received a request from a Haryana government department for closure of its account and transfer of funds to another bank.

“From February 18, 2026, onwards, certain other Haryana Government entities engaged with the Bank with regard to their respective accounts with the Bank. During this process, differences were observed between the balances in the account and the balances as mentioned by the Haryana Government entities holding accounts with the Bank,” the bank said.

Investigators said that, at present, there was no evidence of direct involvement of state government officials in the fraud. “But the role of the officers concerned will be examined, as being supervisory officers it was their duty to keep an eye on the government’s finances,” an officer said.

Official sources at the bank confirmed that a complaint has been lodged with the police. Asked about the whereabouts of suspects, a bank official said, “They have been placed under suspension and are not reporting to the bank currently.”

The issue was raised in the Haryana Assembly during the ongoing Budget session after Leader of Opposition Bhupinder Singh Hooda flagged the matter. Chief Minister Nayab Singh Saini said the case was being probed by the state’s Anti-Corruption Bureau, an FIR has been registered, and a Special Investigation Team (SIT) comprising senior IAS officers is being constituted.

Asserting that those guilty would not be spared, Saini assured the House that “each and every penny of the government’s money shall be recovered”.

The Chief Minister said that while the bank raised the issue with SEBI on February 21, the state government had already decided to de-empanel the bank on February 18 after learning about the multi-crore fraud.

“Be it any bank official, government employee, or anyone else, stern action shall 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.

Meanwhile, officials said AU Small Finance Bank returned over Rs 50 crore to the Haryana government on Monday after a department sought the return of its fixed deposit. This followed the state government’s decision to de-empanel IDFC First Bank and AU Small Finance Bank for government business in Haryana with immediate effect until further orders.

Haryana Chief Secretary Anurag Rastogi, who also heads the Finance Department, has directed all departments, boards and corporations to reconcile their respective bank accounts in strict accordance with Finance Department guidelines and complete the process by March 31.

He further instructed them to ensure that fixed deposits are placed strictly as per approved terms and conditions, and to verify that banks are complying with prescribed deposit instructions.