A massive financial fraud involving approximately ₹590 crore of Haryana government funds has been uncovered at the Chandigarh branch of IDFC First Bank. The incident came to light when the government attempted to transfer funds, only to discover a major mismatch between their records and the actual bank balance. Following this revelation, the bank has suspended four officials suspected of involvement. The Haryana government has taken immediate action by removing IDFC First Bank and AU Small Finance Bank from its list of approved banks for state business.
How did the ₹590 crore fraud happen?
The missing funds belonged primarily to the Development and Panchayats Department and were linked to the Mukhya Mantri Gramin Awas Yojana (MMGAY). The issue surfaced when department officials requested to close their account and move the money to another bank. It was then discovered that the funds were not available as per the records. Early investigations suggest that the accused bank officials may have used fake documentation to misrepresent the account balances. The Haryana Crime Branch is currently investigating the case to track the flow of the money.
What action has the government taken?
The Haryana Finance Department has issued strict orders to protect public money. Effective immediately, IDFC First Bank and AU Small Finance Bank have been de-empaneled. The government has directed all state departments, boards, and corporations to open new accounts exclusively in nationalized banks. Any department that wants to bank with a private lender must now get prior approval with a valid reason. IDFC First Bank has also appointed an external agency for a forensic audit and has requested other banks to freeze accounts where the stolen funds might have been transferred.
Are common customers affected?
While this is a major incident involving government funds, IDFC First Bank has issued a statement clarifying the situation for the general public.
- The bank stated the fraud is limited to a specific group of government accounts in Chandigarh.
- Regular retail and corporate customers are not affected by this incident.
- All government departments have been asked to reconcile their bank accounts by March 31, 2026, to ensure no other discrepancies exist.
