IDFC First Bank Fraud: Four Arrested In Rs 590 Crore Case, Rs 300 Crore Routed To Private Firm

A widening investigation into the Rs 590 crore fraud linked to IDFC First Bank has led to the arrest of four individuals, including two former bank employees, as Haryana’s State Vigilance and Anti-Corruption Bureau (SV&ACB) intensifies its probe into what officials describe as a carefully orchestrated diversion of government funds.

At the centre of the alleged irregularities is a private partnership firm that investigators say received nearly half of the siphoned money. The arrests, made on Tuesday evening, mark a significant development in a case that has triggered political uproar and administrative action across the state.

Who Has Been Arrested?

Addressing the media in Panchkula, SV&ACB Director General A S Chawla confirmed the arrest of Ribhav Rishi, Abhay Kumar, Swati Singla and Abhishek Singla, reported PTI.

Rishi, who headed IDFC First Bank’s Sector 32 branch in Chandigarh until about six months ago, and Abhay Kumar, a relationship manager who resigned in August last year, have been described by investigators as the alleged “masterminds” behind the fraud. Officials allege that the two played a key role in diverting funds from Haryana government-linked accounts maintained at the branch.

The other two arrested, Swati Singla and her brother Abhishek Singla, ran a partnership firm named Swastik Desh Project. Swati holds a 75 per cent stake in the company, while Abhishek owns the remaining 25 per cent. Chawla revealed that Swati is Abhay Kumar’s wife.

Nearly Rs 300 Crore Routed Through Private Firm

Investigators say nearly Rs 300 crore, more than half of the total Rs 590 crore involved, was transferred into the account of the Swastik Desh Project.

“This is the main private company into whose accounts most of the funds were transferred. According to the bank records, nearly Rs 300 crore was transferred, and later the money was moved further,” Chawla said.

Authorities are now tracing the onward movement of funds, describing the money trail as complex and layered. Chawla confirmed that chartered accountants are being hired to assist in analysing financial records and tracking transactions.

Earlier, police had issued a look-out circular (LOC) against Rishi to prevent him from leaving the country.

Rapid Recovery, But Questions Remain

In a significant recovery effort, Chief Minister Nayab Singh Saini informed the Assembly that nearly Rs 556 crore, including Rs 22 crore in interest, has been recovered within 24 hours.

When asked about the gap between the Rs 556 crore recovered and the total Rs 590 crore involved, Chawla indicated that the remaining amount could relate to smaller accounts, possibly linked to the Chandigarh administration.

The investigation, however, is still in its early stages. When questioned about potential involvement of Haryana government officials, Chawla declined to comment, stating it would be premature to draw conclusions.

How The Fraud Came To Light

The case was registered after a Haryana government committee detected irregularities in accounts related to IDFC First Bank. The committee, formed on February 11 by the director of the development and panchayats department, had been tasked with examining “mismatch/issues” in certain accounts.

Its findings pointed to alleged forgery and procedural lapses involving officials from both IDFC First Bank and AU Small Finance Bank. Acting on the state government’s directions, the ACB lodged an FIR under Section 13 (2) of the Prevention of Corruption Act and multiple sections of the Bharatiya Nyaya Sanhita, including provisions related to criminal breach of trust, cheating, forgery, forged documents and criminal conspiracy.

Chawla also highlighted an unusual geographical trail. “It is surprising that the IDFC First Bank branch is in Chandigarh while the Haryana government departments are in state territory, and the AU Small Finance Bank, where the money was transferred, has its branch in Mohali,” he said.

IDFC First Bank has maintained that the fraud is “confined to a specific group of government-linked accounts within the Haryana government operated through the said branch in Chandigarh” and does not extend to other customers.