‘Probe On, But We Have Paid 100%’: IDFC FIRST Bank on ₹590-Crore Fraud Case
Amid an ongoing investigation into a ₹590-crore fraud detected at its Chandigarh branch, IDFC FIRST Bank has stated that it has repaid 100 per cent of the principal and interest claimed by various Haryana government departments, even as the probe continues.
In a public statement issued on Tuesday, the bank said it chose not to delay payments despite the matter being under investigation, reiterating its commitment to what it described as a “customer-first” approach.
“We did not hold up the payment on account of the matter being under investigation. This is the DNA of IDFC FIRST Bank,” the statement said.
₹583 Crore Paid to Haryana Government Departments
According to the bank, it has paid a net amount of ₹583 crore, covering the full principal and interest, to the concerned Haryana government departments. The bank added that the departments have appreciated the swift, professional, and principle-based resolution.
“Even though the investigation in the matter is ongoing, we have paid out 100% of the principal and interest as claimed,” the bank said, adding that it will continue to cooperate with law enforcement agencies to recover its dues from those responsible.
Chief Minister Confirms Recovery
Haryana Chief Minister Nayab Singh informed the state Assembly that nearly ₹556 crore, including around ₹22 crore in interest, was recovered within 24 hours in connection with the case. He further stated that the entire amount due to various state departments, boards, and corporations has now been credited back.
How the Fraud Came to Light
Earlier this week, IDFC FIRST Bank disclosed in a regulatory filing that it had detected a fraud of approximately ₹590 crore involving certain Haryana government-linked accounts operated through its Chandigarh branch. The bank said the fraud was prima facie linked to unauthorised and fraudulent activities by some branch employees, possibly in collusion with other individuals.
The discrepancies surfaced when a Haryana government department requested the closure of its account and transfer of funds to another bank. During the process, officials noticed a mismatch between the account balance mentioned and the actual funds available. Similar issues were subsequently identified in other government-linked accounts.
Investigation and Arrests
The Haryana Anti-Corruption Bureau has launched a detailed investigation into the matter, and four people have been arrested so far. The Chief Minister has also announced the formation of a committee to examine the case thoroughly and fix accountability.
Bank Reaffirms Cooperation
IDFC FIRST Bank said it remains committed to working closely with Haryana government departments and law enforcement agencies to pursue action against the perpetrators and recover the losses incurred due to the fraud.
