A former branch manager has been identified as the key figure behind the ₹590-crore fraud at IDFC FIRST Bank’s Chandigarh branch, investigators have revealed. Funds from accounts linked to Haryana government departments were allegedly diverted to a company owned by the former manager’s wife and brother-in-law, according to findings in the case.
Haryana’s Anti-Corruption Bureau (ACB) has arrested four people so far: former branch manager Ribhav Rishi, former relationship manager Abhay, Rishi’s wife Swati Singla, and her brother Abhishek Singla.
AS Chawla, Director General of the ACB, said Rishi and Abhay are the prime accused. Both had resigned from the branch around six months ago.
Nearly ₹300 crore was allegedly transferred to a company named Swastik Desh Projects. Swati Singla reportedly holds a 75% stake in the firm, while Abhishek Singla owns the remaining 25%. The accused are set to be produced before a court.
How the fraud was detected
Earlier this week, IDFC FIRST Bank disclosed in a regulatory filing that it had uncovered a fraud of around ₹590 crore involving certain Haryana government-linked accounts operated through its Chandigarh branch. The bank stated that the fraud appeared to stem from unauthorised and fraudulent activities by some employees, possibly in collusion with others.
The irregularities came to light when a Haryana government department sought to close its account and transfer the balance to another bank. During the process, discrepancies were found between the recorded balance and the actual funds available. Similar mismatches were later identified in other government-linked accounts.
What investigators said
Chawla said the alleged mastermind plan was devised by Rishi and Abhay. Around ₹300 crore was routed to Swastik Desh Projects and then allegedly transferred onward.
He also pointed out the geographic complexity of the case: the bank branch is in Chandigarh, the Haryana government departments are located within the state, and the recipient bank account was held at a branch of AU Small Finance Bank in Mohali.
Investigators questioned senior bank officials about how government accounts were opened outside the state’s territory. Officials cited the close proximity of Chandigarh, Mohali and adjoining Haryana districts, involving two states and one Union Territory.
Chawla said the investigation is still at a preliminary stage. While the alleged modus operandi has been identified, further details will be shared only after cross-verification.
Bank’s response
Amid the probe, IDFC FIRST Bank has said it has repaid 100% of the amount claimed by the Haryana government departments.
In a public statement, the bank said it acted promptly despite the ongoing investigation, repaying both principal and interest amounting to ₹583 crore. It reiterated its commitment to customer-first principles and said the departments had appreciated the swift and professional resolution. (Agency)
