IDFC First Bank's Rs 590 crore scam: employees embezzled Haryana government funds

IDFC First Bank's Rs 590 crore scam: A major fraud worth crores of rupees has been detected at a major branch of IDFC First Bank in Chandigarh. The bank has officially acknowledged that a massive fraud of Rs 590 crore has occurred at this branch. The most shocking aspect is that this entire financial scam is directly linked to the accounts of the Haryana government. According to a report in the Economic Times, this massive Rs 590 crore scam was not uncovered by any investigating agency, but during a seemingly routine process.

The revelation of this massive financial fraud has sent shockwaves through the bank's administration.

Since February 18, 2026, several entities affiliated with the Haryana government began contacting this bank branch in Chandigarh. Their primary objective was to close their official accounts and transfer the entire amount deposited there to another bank. This was a routine process, but as the paperwork progressed, a major discrepancy emerged. A significant discrepancy was found between the government's reported balance and the actual balance in the bank's system. The money that was believed to be safe was never there. This discrepancy between the documents and reality revealed the entire scam.

Bank Takes Strong Action, 4 Employees Suspended

IDFC First Bank management immediately swung into action upon learning of the scam. As a preliminary action in this serious matter, four suspected officials of the Chandigarh branch have been suspended.

In its official filing with the stock exchange, the bank clarified that the suspensions will remain in place until the investigation is complete. Management also made it clear that no bank employee or outsider involved in this fraud will be spared.

Summary

The bank has also sent an alert to other banks where the money was transferred. The bank has requested that the balances of these suspicious accounts be immediately frozen to prevent further transfers.