'Probe underway, every paisa will be returned': Haryana CM Saini on Rs 590 crore IDFC FIRST Bank fraud case

Nayab Singh Saini

• Haryana CM promises recovery of Rs 590 crore fraud funds
• Probe launched into fraud at IDFC First Bank's Chandigarh branch
• RBI says no systemic risk, banks have adequate capital

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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 also promised that “every paisa will be returned” and warning that no one involved will be spared.

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

The controversy erupted after IDFC First Bank disclosed in a regulatory filing that unauthorised and fraudulent activities were detected at its Chandigarh branch in accounts linked to Haryana government entities.

The bank maintained that the issue is confined to “a specific group of government-linked accounts within Haryana Government” handled through the Chandigarh branch and does not extend to other customers.

The bank maintained that the issue is confined to “a specific group of government-linked accounts within Haryana Government” handled through the Chandigarh branch and does not extend to other customers.

Raising the issue in the House, Leader of the Opposition Bhupinder Singh Hooda questioned the government’s response and asked what action had been initiated. Hooda said the bank had detected the irregularities and demanded clarity from the government on its next steps.

Responding to the debate, Saini told the Assembly that a probe has been ordered and that both the State Anti-Corruption Bureau and vigilance authorities are investigating the matter. “Be it a bank employee or any government employee, anyone who is found involved will not be spared,” Saini said.

He added that once discrepancies were detected, the government immediately moved to transfer the funds to another bank. “The government is taking this issue seriously, be it bank employee or any other employee, anyone who is involved, strict action will be taken,” he told the House.

Earlier today, Reserve Bank of India Governor Sanjay Malhotra on reacting to IDFC First Bank's Rs 590-crore fraud by employees and said "we are watching the development, there is no systemic issue here". "Banks have enough capital with them. Capital adequacy is 17% while the requirement is of 11.5%," he said.