Haryana recovered ₹556 crore in IDFC First Bank fraud case, says CM Nayab Saini

IDFC First Bank Fraud: Haryana Chief Minister Nayab Singh Saini on Tuesday informed the state assembly that nearly ₹556 crore has been recovered so far, including approximately ₹22 crore as interest, out of the ₹590 crore involved in the alleged fraud at the bank’s Chandigarh branch.

He said that a high-level committee has been set up under the leadership of the finance secretary to investigate the matter. According to him, the panel will thoroughly examine the incident and offer recommendations to prevent similar occurrences in the future.

“I want to clarify before this House that the entire amount lost in yesterday's incident, including the funds of some Haryana government departments and boards and corporations, has been deposited back into our accounts within just 24 hours. Approximately ₹556 crore was deposited by the bank, of which we also received interest of approximately ₹22 crore.”

Saini claimed that the interest has been returned, with the entire amount recovered and deposited within just 24 hours.

Saini stated that in the ongoing case, no one would be exempt, whether a bank employee, private citizen, or government official. He added that with Prime Minister Narendra Modi leading the country, the hard-earned money of 2.8 crore people is fully protected. Saini further emphasised that governance in Haryana has transformed, ensuring that every single paisa of public funds is properly accounted for.

He added that the operation was carried out through the collusion of four or five middle- and lower-level employees at a bank branch, and warned that strict action would be taken against any government official or employee found involved.

Meanwhile, Congress leader Bhupinder Singh Hooda had raised questions in the state assembly regarding the alleged fraud at an IDFC First Bank branch, asking what steps the government had taken. As per ANI, Hooda, the Leader of Opposition, said, "What action did the Haryana government take?....the Haryana government should be capable of finding out the culprit in the case in a day."

What did IDFC First Bank say?

IDFC First Bank suspended four employees after detecting fraudulent transactions, totalling around ₹590 crore, in some Haryana government accounts at its Chandigarh branch, according to the bank’s official stock exchange filing.

The bank initiated an investigation and intends to recover the money through legal and disciplinary measures. According to a preliminary internal review, the issue is limited to a specific set of Haryana government-linked accounts at the Chandigarh branch and does not affect other customers of the branch, it said.

"The aggregate amount under reconciliation across the identified accounts at the above-mentioned Branch is approximately ₹590 crore. The impact may be determined based on receipt of further information, validation of claims, recoveries of any nature, including those made through the process of marking lien on fraudulent beneficiary accounts maintained with other Banks, liabilities of other entities involved in the fraudulent transactions, and the legal recovery process," IDFC First Bank mentioned.

The filing added, “The Bank has taken the following actions: Four suspected officials have been placed under suspension pending investigation. The Bank will pursue strict disciplinary, civil and criminal action against the employees and other external individuals responsible, in accordance with applicable law.”