Haryana ACB Launches Criminal Probe Into Massive Rs 590 Crore Bank Fraud
The Haryana Anti-Corruption Bureau (ACB) has officially filed a criminal case concerning an alleged financial fraud amounting to Rs 590 crore. This significant case implicates IDFC First Bank and involves transactions across 18 different state government departments, marking a major corruption investigation in the region.
Government Implements Strict Financial Controls
In response to the unfolding scandal, the Haryana government has instituted rigorous new financial protocols. Effective immediately, any government organization seeking to open an account with a corporate or private bank must obtain mandatory approval from the state finance department. This decisive move aims to prevent similar incidents and tighten fiscal oversight.
Chief Minister Nayab Singh Saini has publicly stated that the government is closely and actively monitoring the investigation's progress. He emphasized the administration's commitment to transparency and accountability in this high-stakes financial matter.
Immediate Banking Restrictions and Account Closures Ordered
The state government has issued urgent directives to all departments, boards, and autonomous bodies. They have been instructed to immediately transfer all existing balances and permanently close any accounts held with IDFC First Bank and AU Small Finance Bank. Consequently, both financial institutions have been formally de-empanelled and are no longer authorized to handle any state government business.
According to detailed directions released by the Additional Chief Secretary (Finance), government departments must now provide specific, justified reasons if they opt not to use a nationalized bank for their financial operations. Furthermore, the heads of departments will be held personally accountable for any unauthorized accounts opened under their jurisdiction.
Financial Mismanagement and New Reconciliation Mandates
The finance department's investigation revealed concerning practices, noting that some banks had kept government funds in low-interest savings accounts despite explicit instructions to place these amounts in higher-yield fixed deposits. To address this and ensure better fiscal management, the government has now made monthly financial reconciliations compulsory for all entities.
All government bodies have been directed to complete a full reconciliation of their accounts by March 31. A certified compliance report detailing these reconciliations must be submitted to the finance department no later than April 4.
FIR Registered and Open-Ended Investigation Underway
Director General of Police A S Chawla confirmed that a First Information Report (FIR) was registered on Monday following an official complaint from the office of Chief Secretary Anurag Rastogi. A government release stated, "In compliance with the Haryana government's decision, a case has been registered and an investigation initiated against employees of IDFC First Bank and AU Small Finance Bank, along with other public servants and private individuals."
The charges have been filed under Section 13(2) of the Prevention of Corruption Act, 1988, and multiple sections of the Bharatiya Nyaya Sanhita (BNS), including 316(5), 318(4), 336(3), 338, 340(2), and 61(2).
DGP Chawla described the case as an "open-ended investigation," asserting, "We shall look into every aspect and nail all those involved." A dedicated special investigation team has been assigned to lead the probe, underscoring the seriousness with which authorities are treating the allegations.
Political Fallout and Assembly Debates
The controversy has ignited heated debates within the Haryana Legislative Assembly. Leader of the Opposition Bhupinder Singh Hooda accused the government of procrastination and adopting a negative attitude towards addressing the fraud. In response, Chief Minister Saini provided reassurances, stating, "A major portion of the amount — approximately Rs 450 crore — is held in fixed deposits, and the government is confident of recovering the full sum… Whether institutions, departments, officials, or bankers, anyone found guilty will face prosecution."
Bank's Internal Discovery and Suspensions
The fraud came to light after IDFC First Bank itself reported a Rs 590-crore discrepancy in deposits held at its Chandigarh branch. The bank has taken internal disciplinary action, suspending four of its employees in connection with the irregularity. The ongoing investigations are now expected to scrutinize the authorized officers responsible for opening the accounts and allegedly diverting the funds, placing them firmly under the investigative scanner.
