IDFC First Bank disclosed that employees at its Chandigarh branch carried out unauthorised dealings in accounts linked to the Haryana government. (AI image)
IDFC First Bank fraud case: Haryana Chief Minister Nayab Singh Saini on Tuesday told the state assembly that the government has succeeded in recovering nearly Rs 556 crore linked to the IDFC First Bank fraud case. Addressing the House, Saini said that about Rs 556 crore – which includes roughly Rs 22 crore as interest – was returned within a span of 24 hours.Earlier on Sunday, IDFC First Bank had reported a fraud of Rs 590 crore carried out by certain employees along with other individuals in accounts associated with the Haryana government.Saini assured the Assembly that all funds belonging to Haryana government departments had been fully restored, according to a PTI report. He said that the entire sum had been credited back to the government’s accounts and that the recovery process was completed within 24 hours.
What is the IDFC First Bank fraud case?
The suspected irregularity surfaced after entities connected to the Haryana government detected discrepancies between the actual balances held in bank accounts and the figures recorded in official statements.IDFC First Bank disclosed that employees at its Chandigarh branch carried out unauthorised dealings in accounts linked to the Haryana government, leading to a mismatch in deposits estimated at nearly ₹590 crore. The amount involved exceeds the bank’s third-quarter net profit of ₹503 crore.Also Read | What is the IDFC First Bank Rs 590 crore fraud case? Explained in 10 pointsOn Monday, IDFC First Bank Managing Director and Chief Executive V. Vaidyanathan said the Rs 590-crore fraud involving Haryana government accounts occurred due to collusion between bank employees and outside parties.Speaking during a special conference call with investors and analysts ahead of the equity market opening, Vaidyanathan said that the bank would set aside provisions in connection with the fraud.Saini has said that the bank had informed the government that the fraud was mainly linked to a specific branch in Chandigarh, where four to five mid-level and junior employees were allegedly involved in the conspiracy.Saini added that strict action would be taken against all those found responsible, whether they are bank staff, private persons, or government officials, emphasizing that no one implicated in the case would be let off.A day earlier, on Monday, Saini had announced that the state’s Anti-Corruption Bureau would carry out a detailed investigation into the matter.Saini said on Monday that a committee led by the Finance Secretary has been constituted to examine the entire issue.
