Chandigarh

Haryana Chief Minister Nayab Singh Saini on Monday assured that the funds involved in the IDFC First Bank Rs 590 crore fraud case will “definitely come back” and confirmed that strict action would be taken against the guilty parties.

Speaking in the Haryana Legislative Assembly, Saini said the government had initially transferred all money to an authorised bank after detecting discrepancies. The case has been referred to the Anti-Corruption Bureau and Vigilance Department for further investigation.

“We have been proactive in identifying this fraud. When certain glitches were noticed, we requested statements, which also did not match. Consequently, the government transferred all funds to an authorised bank, along with interest. IDFC First Bank informed SEBI that the irregularity occurred due to an employee’s fault,” the CM said.

He added, “The investigation is ongoing. The money is completely safe and will definitely be recovered. Appropriate action will be taken against those found guilty, including the bank if necessary.”

The Chief Minister emphasised that the government is taking the matter seriously. “The issue surfaced recently on social media. We have investigated thoroughly, and I assure the House that all the funds will be recovered. Official statements can only be made after the investigation concludes,” he said.

Meanwhile, Haryana’s Finance Department (Institutional Finance & Credit Control) has de-empanelled IDFC First Bank and AU Small Finance Bank for government operations with immediate effect. All government departments, boards, corporations, and PSUs have been instructed to transfer funds to other authorised banks and close accounts with these banks until further notice.

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IDFC First Bank has suspended four employees following the discovery of fraudulent activity affecting approximately Rs 590 crore in certain Haryana government accounts at its Chandigarh branch. The bank stated that the matter is limited to a specific set of government-linked accounts and does not impact other customers of the branch. It has initiated internal investigations and plans to recover the funds through legal and disciplinary measures.