Tag: IDFCFirstBank

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CBI raids officials in ₹661 cr bank fraud case

The Central Bureau of Investigation (CBI) has intensified its investigation into an alleged ₹661-crore fraud involving the diversion of government funds through IDFC First Bank and AU Small Finance Bank. As part of the probe, the agency conducted searches at six locations across Chandigarh, Panchkula and the Delhi-NCR region. The raids targeted premises linked to senior Haryana cadre officers, including IAS and IFS officials, as well as a Noida-based consultancy firm and its director.

According to investigators, funds belonging to various departments of the Haryana government and the Chandigarh Administration were allegedly diverted through a network involving bank officials, public servants and private entities. The CBI suspects that some officials received undue benefits for facilitating transactions and overlooking irregularities that enabled the movement of public money. The agency is examining whether there was a larger nexus between government officers and banking personnel.

During the searches, investigators reportedly recovered documents, digital records and financial information that could help trace the flow of funds. The CBI is also looking into a suspected benami property worth nearly ₹20 crore that is believed to be linked to a senior public servant under scrutiny in the case.

The fraud case has already led to multiple arrests and legal action. Earlier investigations resulted in charges being filed against bank officials, government employees and private individuals. The Enforcement Directorate (ED) is conducting a parallel money-laundering probe and has arrested businessman Vikram Wadhwa in connection with the case.

The alleged scam first came to light after authorities detected irregular transactions involving government deposits maintained with the banks. Subsequent investigations suggested that funds were moved through unauthorized channels and allegedly misappropriated over a period of time.

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Haryana recovers ₹578 cr in IDFC First Bank fraud in 24 hrs

Haryana CM Nayab Singh Saini announced that the entire ₹578 crore lost in a fraud involving IDFC First Bank has been recovered within 24 hours. The fraud, reported in Haryana, triggered an immediate response from state police and cybercrime teams, who tracked the money trail and froze multiple accounts.

He praised the quick coordination between banking officials and law-enforcement agencies, calling it a major success in tackling financial crime.

He assured that strict action would be taken against those involved and said the case shows Haryana’s strong cyber-security and rapid response system to protect public and institutional funds.

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Corporate

₹590 crore fraud reported at IDFC First Bank

IDFC First Bank has disclosed a fraud of nearly ₹590 crore at its Chandigarh branch, involving accounts linked to the Haryana government. The bank has reported the matter to regulators and launched an internal investigation to determine how the irregularities occurred.

The fraud was detected in government-related accounts, raising alarm over the safety of public funds. IDFC First Bank confirmed that it is cooperating with authorities, including the Reserve Bank of India, and has begun corrective measures to strengthen its internal controls.
In a swift response, the Haryana government has de-empanelled both IDFC First Bank and AU Small Finance Bank from handling state transactions. This means the two institutions will no longer be allowed to manage government accounts, schemes, or funds in the state.

Officials said the move was precautionary, aimed at safeguarding public money and ensuring transparency in financial dealings.
The incident has sparked wider debate about the monitoring of government accounts and the role of banks in preventing fraud. Financial experts point out that while frauds of this scale are uncommon, they highlight vulnerabilities in oversight and the need for stronger auditing practices.

For IDFC First Bank, the disclosure comes at a challenging time, as the institution has been expanding its footprint in retail and government banking services. The bank has assured stakeholders that it is committed to restoring trust and preventing similar incidents in the future.

The Haryana government’s decision to remove AU Small Finance Bank alongside IDFC First Bank suggests a broader review of empanelled institutions. Analysts believe this signals a tougher stance on accountability, with the state determined to enforce stricter standards across the banking sector.

As investigations continue, attention will focus on identifying how the fraud was carried out, who was responsible, and what measures can be introduced to strengthen safeguards around government-linked accounts. The case is expected to influence future policies on how states engage with banks for managing public funds.

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