Bank fraud case: Haryana CM says ₹556 crore returned; Opposition seeks CBI probe

The entire ₹556 crore linked to fraudulent transactions at the Chandigarh branch of IDFC First Bank has been restored to Haryana government accounts within 24 hours, Chief Minister Nayab Singh Saini told the Assembly on Tuesday.

The sum includes ₹22 crore in interest, he said, adding that swift administrative action ensured no loss to the public exchequer.

Money restored, probe committee formed

“A total of Rs 556 crore, including Rs 22 crore of interest, was returned to the government account within 24 hours,” the Chief Minister said.

He informed the House that the involvement of four to five employees of the bank’s Chandigarh branch has come to light. “No one, whether a bank employee, a private individual, or a government official, will be spared in the case,” he said.

Assuring members, he added: “No one can even look at the hard-earned money of 2.8 crore people (of the state). Today, the governance system in Haryana has changed, and every penny of the public's money is accounted for.”

The government has constituted a committee headed by the Finance Secretary to investigate the matter. “This committee will not only investigate the entire matter but also make recommendations to prevent such incidents from recurring in the future,” he said.

Earlier, the bank disclosed in an exchange filing that it had identified ₹590 crore of fraudulent activities at its Chandigarh branch.

FIR filed; opposition demands CBI probe

The state Vigilance and Anti-Corruption Bureau has registered an FIR against bank officials, public servants and others under provisions of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita.

Outside the Assembly, the opposition Congress staged a protest. State party President Rao Narendra Singh told the media: “This is not an ordinary scam, it is more than a Rs 590-crore scam, and I demand a CBI investigation into it, as big players are involved.”

Bank de-empanelled before formal acknowledgement

A day earlier, the Chief Minister said the fraud surfaced due to the alertness of state departments. The government de-empanelled the bank on February 18 and directed that the entire amount, along with interest, be transferred to a nationalised bank.

He said the bank wrote on February 21 acknowledging irregularities by certain employees and informed the Securities and Exchange Board of India.

The bank has initiated action against the employees concerned.

The Chief Minister added that a significant portion of government funds deposited with the bank had been placed in fixed deposits. He said keeping departmental funds in banks was not new and had occurred during previous tenures as well, with banks empanelled periodically.