IDFC First Bank case: 4 arrested after Rs 590-crore fraud; Rs 100-crore trail linked to firm owned by siblings

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Haryana's State Vigilance and Anti-Corruption Bureau said on Wednesday that it has arrested four people in connection with the Rs 590-crore IDFC First Bank fraud case.

Among those arrested, two are former IDFC First Bank employees while the other two are owners of a partnership firm, PTI reported quoting officials.

The arrests were made on Tuesday evening as part of the ongoing investigation of the IDFC First Bank fraud case.

Earlier, The Indian Express had reported that authorities were on the hunt for a Chandigarh-based woman and her brother in connection with the scam after “suspicious” transfers worth nearly Rs 100 crore were made to a firm owned by them.

The report, quoting police sources, also said that a former manager from Panchkula was central to the investigation. The employee had left the bank over six months ago.

Earlier, the Anti-Corruption Bureau registered an FIR, while the state government constituted a committee to examine the fraud.

On Sunday, the IDFC Bank disclosed a Rs 590-crore fraud committed by its employees and others in accounts held by the Haryana government.

On Tueaday, Haryana chief minister Nayab Singh Saini told the state assembly that the state government had recovered nearly Rs 556 crore owed to it in the case. "Nearly Rs 556 crore, including nearly Rs 22 crore in interest, came back within 24 hours," Saini said in the House.

"I want to clarify before the House that the money concerning Haryana government departments, (the) entire amount has been deposited back into our accounts ... The recovery has been made within 24 hours," Saini said.

He said the bank had apprised the government that the incident primarily involved a particular branch of the bank in Chandigarh, involving four to five bank employees of middle and lower rung who colluded in the whole thing.

Leader of Opposition Bhupinder Singh Hooda and Haryana Congress chief Rao Narender Singh have demanded a CBI probe in the matter.