Daijiworld Media Network – Chandigarh
Chandigarh, Feb 25: In a major breakthrough in the Rs 590-crore fraud linked to IDFC First Bank in Haryana, the State Vigilance Bureau has arrested four persons, including the alleged mastermind, for siphoning off government funds through fraudulent transactions.
The accused have been identified as Ribhav Rishi, Abhay Kumar, Swati Singla and Abhishek Singla. Two of them are former officials of IDFC First Bank, while the others are private individuals running a partnership firm.
The scam surfaced at the bank’s Chandigarh branch after investigators detected that nearly Rs 590 crore had allegedly been diverted through unauthorised transactions from accounts linked to Haryana government departments.
According to officials, two accounts were opened in September 2025 under the Mukhya Mantri Gramin Awas Yojana-2.0 scheme at IDFC First Bank and AU Small Finance Bank, with deposits of Rs 50 crore and Rs 25 crore respectively. The funds were meant to remain untouched until further approval from the government.
Irregularities came to light in January this year when authorities directed closure of the accounts and transfer of the funds, along with accrued interest, to another bank.
While AU Small Finance Bank transferred Rs 25.45 crore and closed the account, IDFC First Bank reportedly transferred only about Rs 1.27 crore instead of the full Rs 50 crore plus interest. The discrepancy raised suspicion and prompted a deeper probe, which exposed the large-scale fraud.
In a statement issued subsequently, IDFC First Bank said that around Rs 583 crore, which had been fraudulently transferred by certain employees, was returned to the Haryana government within 24 hours of the matter coming to light.
Haryana Chief Minister Nayab Singh Saini informed the State Assembly that the entire amount, including interest, had been recovered through coordinated efforts between the government and the banks.
The state government has since de-empanelled both IDFC First Bank and AU Small Finance Bank from handling government-related business.
Meanwhile, the Opposition has demanded a probe by the Central Bureau of Investigation (CBI), alleging serious lapses in oversight.
The State Vigilance Bureau said investigations are ongoing to fix accountability, identify the full extent of the conspiracy, and trace any remaining funds involved in the case.
Officials indicated that more arrests are likely as the probe progresses.