IDFC First Bank Fraud Case: Rs 590 Crore Scam Uncovered in Haryana, Four Arrested Including Alleged Mastermind

In a major development in the Rs 590-crore IDFC First Bank fraud case in Haryana, the State Vigilance Bureau has arrested four individuals, including the alleged mastermind, in connection with fraudulent transactions that reportedly siphoned off government funds. The case has triggered political uproar and intensified scrutiny of banking oversight mechanisms.

The arrested individuals have been identified as Swati Singla, Abhay Kumar, Abhishek Singla, and Ribhav Rishi. Investigators revealed that two of the accused are former employees of IDFC First Bank, while the others are private individuals linked to a partnership firm allegedly used in the fraud.

Mastermind Allegedly a Former Bank Manager

According to investigators, Ribhav Rishi — a former IDFC First Bank manager who is currently employed with AU Small Finance Bank in Chandigarh — is suspected of orchestrating the conspiracy. Authorities believe he played a key role in creating shell firms and manipulating banking procedures to facilitate unauthorized fund transfers.

The alleged fraud came to light at the IDFC First Bank branch in Chandigarh after officials discovered that more than Rs 590 crore had been transferred through unauthorized transactions from accounts linked to Haryana government entities.

How the Rs 590 Crore Fraud Was Detected

The investigation revealed that in September 2025, two accounts were opened under the Mukhya Mantri Gramin Awas Yojana-2.0 scheme at IDFC First Bank and AU Small Finance Bank. The accounts reportedly received deposits of Rs 50 crore and Rs 25 crore, respectively. The funds were meant to remain untouched until further official authorization.

However, discrepancies surfaced in January when authorities directed both banks to close the accounts and transfer the funds — along with accrued interest — to another designated bank.

While AU Small Finance Bank transferred Rs 25.45 crore and closed the account as instructed, IDFC First Bank reportedly transferred only around Rs 1.27 crore instead of the expected Rs 50 crore plus interest. This shortfall raised red flags and prompted a deeper probe, eventually uncovering the massive alleged fraud.

Funds Recovered Within 24 Hours

In its latest statement, IDFC First Bank said that approximately Rs 583 crore that had allegedly been fraudulently transferred by certain employees was returned to the Haryana government within 24 hours of the fraud being detected.

Haryana Chief Minister Nayab Singh Saini informed the state assembly that coordinated efforts between the government and the banks ensured full recovery of the funds, including interest. He also announced that both IDFC First Bank and AU Small Finance Bank have been barred from handling government business in the state until further notice.

Political Reaction and Ongoing Investigation

The Opposition has demanded a Central Bureau of Investigation (CBI) probe into the Rs 590-crore bank fraud, calling for greater transparency and accountability. Meanwhile, the Haryana State Vigilance Bureau continues its investigation to determine the full extent of the conspiracy, trace any remaining funds, and fix responsibility.

Authorities are examining transaction trails, internal banking procedures, and the role of employees to ensure systemic gaps are addressed. The case has raised serious concerns about financial safeguards in government-linked accounts and the need for stricter regulatory oversight.

As the probe continues, officials have indicated that further arrests and legal action may follow if additional evidence emerges.