‘Funds Are Safe, Probe Underway’: Haryana CM Saini On Rs 590 Crore IDFC FIRST Bank Fraud Case

Last Updated:February 23, 2026, 17:54 IST

IDFC FIRST Bank has suspended four employees after detecting suspected fraudulent transactions of nearly Rs 590 crore in Haryana government-linked accounts at Chandigarh branch.

Haryana Chief Minister Nayab Singh Saini on Monday said the state government acted swiftly after irregularities were noticed in the alleged Rs 590 crore fraud linked to certain Haryana government accounts at the Chandigarh branch of IDFC FIRST Bank.

Saini said the government was proactive in identifying discrepancies in certain accounts.

“When some glitches were noted, we asked for statements, and those, too, did not match. Therefore, the government decided to transfer all the money to an authorised bank, along with interest," the Chief Minister said. He added that the funds are completely safe and assured that the money will be recovered.

The Haryana CM said IDFC FIRST Bank had written to SEBI in its defence, stating that an employee was at fault. However, the state government has referred the matter to the Anti-Corruption Bureau and the Vigilance Department to examine the seriousness of the case.

“The investigation is going on. Appropriate action will be taken against those found guilty, and even the bank if it is found at fault," he said, reiterating that the government would ensure accountability in the matter.

His remark came in response to a question asked by the Leader of the Opposition, Bhupinder Singh Hooda, in the Haryana Assembly.

Hooda demanded to know what action the state government has taken in the matter and whether accountability has been fixed.

“What action did the Haryana government take? We have all the details that the inquiry is being conducted… The Haryana government is capable of finding out the culprit in the case," he said.

What’s The Case?

IDFC FIRST Bank has suspended four employees after uncovering suspected fraudulent transactions worth nearly Rs 590 crore in certain Haryana government-linked accounts at its Chandigarh branch. The development was disclosed in a regulatory filing by the bank.

In its statement, the bank said an initial internal review found that the issue was restricted to a specific set of government-linked accounts handled at the Chandigarh branch and did not affect other customers.

It noted that the total amount currently under reconciliation in the identified accounts is around Rs 590 crore. The final financial impact, the bank added, will depend on further verification of claims, possible recoveries — including action against beneficiary accounts in other banks — liabilities of other entities involved, and the outcome of legal proceedings.

The bank confirmed that four officials suspected of involvement have been suspended pending investigation.

It also said it would initiate strict disciplinary, civil and criminal proceedings against employees and any external individuals found responsible, in accordance with the law. Efforts to recover the funds through legal channels are under way.

Haryana Government Takes Action

After the disclosure, Haryana’s Finance Department (Institutional Finance & Credit Control) announced that it has de-empanelled IDFC FIRST Bank and AU Small Finance Bank for all government-related transactions with immediate effect.

According to an official statement, no government funds will be deposited, invested or routed through these banks until further notice.

All departments, boards, corporations and public sector undertakings have been directed to shift their balances to authorised banks and close existing accounts with the two institutions.

Opposition Voices Concern

Congress leader Rao Narendra Singh reacted strongly to the incident, calling it more than a financial lapse.

He described it as a serious blow to public trust and questioned how such a substantial amount could allegedly be misused without major negligence or possible collusion at higher levels. He also raised concerns about whether the government’s financial monitoring systems were functioning effectively.

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