Rs 590-crore question: How ex-branch head & relationship manager ‘masterminded’ IDFC FIRST Bank scam linked to Haryana government funds

A Rs 590-crore fraud case linked to IDFC First Bank has led to the arrest of four individuals, including two former bank employees, the Haryana State Vigilance and Anti-Corruption Bureau (ACB) confirmed on Wednesday.

The arrests were made on Tuesday evening as part of an ongoing investigation into alleged financial irregularities involving government accounts.

Who Has Been Arrested?

Speaking to the media in Panchkula, ACB Director General A S Chawla identified the accused as Ribhav Rishi, Abhay Kumar, Swati Singla and Abhishek Singla.
Rishi, who previously headed the bank’s Sector 32 branch, left his post around six months ago. Abhay Kumar, a relationship manager at the bank, resigned in August last year. According to officials, the two former employees are believed to have ‘masterminded’ the fraud.

Swati Singla and her brother Abhishek Singla, who run a partnership firm named Swastik Desh Project, were also arrested. Authorities stated that approximately Rs 300 crore was transferred into the firm’s bank account.

Officials revealed that Swati Singla holds a 75 per cent stake in the firm, while Abhishek holds the remaining 25 per cent. Swati is reportedly married to Abhay Kumar.

Fraud Details and Government Response

The alleged fraud came to light after discrepancies were found in accounts linked to Haryana government departments. On Sunday, IDFC First Bank disclosed that a Rs 590-crore fraud had been committed by certain employees and others in accounts held by the state government.On Tuesday, the bank stated that it had repaid 100 per cent of the principal and interest to the affected Haryana government departments, releasing a total of Rs 583 crore.

Haryana Chief Minister Nayab Singh Saini told the Assembly that the government would not spare anyone involved. He added that the irregularities were primarily related to the bank’s Chandigarh branch and involved alleged collusion at middle and lower levels.

Leader of Opposition Bhupinder Singh Hooda and Haryana Congress chief Rao Narender Singh have demanded a CBI probe into the matter.

FIR and Legal Provisions Invoked

Following preliminary findings, the ACB registered an FIR under Section 13(2) of the Prevention of Corruption Act. Charges were also filed under multiple sections of the Bharatiya Nyaya Sanhita, including criminal breach of trust, cheating, forgery, use of forged documents and criminal conspiracy.

A Special Investigation Team (SIT) has been constituted under the supervision of senior IPS officer Ganga Ram Punia to conduct a detailed probe.

Inquiry Committee Findings

A committee formed by the director of Haryana’s Development and Panchayats Department examined issues relating to IDFC First Bank accounts. The committee, set up on 11 February to investigate reported “mismatch/issues”, uncovered alleged forgery and procedural lapses involving officials from both IDFC First Bank and AU Small Finance Bank.

The committee’s findings were incorporated into the FIR filed by the State Vigilance Anti-Corruption Bureau.

On 18 February, the Haryana government officially de-empanelled IDFC First Bank and AU Small Finance Bank from participating in government business.

Ongoing Investigation

The case remains under investigation, with authorities examining the full trail of transactions and potential involvement of additional individuals. Officials have stated that further action will follow based on the findings of the Special Investigation Team.

Inputs from PTI