Haryana IDFC First Bank Scam... How the Rs 590-crore fraud unfolded at IDFC Bank branch

Haryana IDFC First Bank Scam: The revelation of a 590 crore rupee scam involving IDFC First Bank in Haryana has caused a stir, both politically and in investigative agencies. Late last night, Vigilance arrested several accused, including the mastermind, in this case involving the Chandigarh branch. While the government claims that the entire amount has been recovered, questions remain.

How did this scam happen?

In this entire case, Vigilance took action at around 6 pm on February 24th and arrested four accused, including mastermind Ribhav Rishi, Abhay Kumar, Swati Singla, and Abhishek Singla. Ribhav Rishi, a former bank manager and currently posted at AU Small Finance Bank, is accused of conspiring to embezzle government funds by creating shell companies. Agencies are now investigating the entire network and money trail.

How the ₹590 Crore Scam Came to Light

The entire case began with a routine procedure. Around February 2026, the Haryana government issued an order de-empanelling IDFC First Bank and AU Small Finance Bank from government operations. Departments were instructed to immediately transfer their funds deposited in these banks to other authorized banks.

When a department requested the Chandigarh branch to close its account and transfer the funds, the real discrepancy came to light. There was a significant discrepancy between the balance shown in the account and the actual balance.

As the investigation progressed, it was discovered that funds were missing from several government accounts. Initial investigations revealed irregularities of approximately ₹490 crore, which later increased to approximately ₹590 crore.

What was the modus operandi of the scam?

According to investigating agencies, this wasn't a high-tech cyber fraud, but rather a very traditional one. It's alleged that some bank employees, in collusion with outsiders, withdrew money from government accounts through fake checks and unauthorized transactions and transferred it to other accounts.

Fake companies were used in this entire scheme to conceal the money trail. According to sources, the mastermind of this conspiracy was Ribhav Rishi, a former manager at IDFC First Bank and later at AU Small Finance Bank.

Bank and Government Action

As soon as the scam came to light, both the bank and the government took swift action. The bank suspended four employees, filed a police complaint, informed the Reserve Bank of India, and subsequently commissioned a forensic audit by KPMG.

Market Impact - Investors Shocked

The scam also impacted the stock market. IDFC First Bank shares fell by nearly 20 percent, causing losses to investors. It is estimated that approximately ₹14,000 crore in market value was wiped out in a matter of hours.

RBI Statement

Regarding the entire matter, Sanjay Malhotra (RBI Governor) stated that this is a localized incident and does not pose any widespread threat to the banking system. However, the RBI is monitoring the situation.

Big Question: Who is Responsible?

Although the government has claimed that all the money has been recovered, many questions remain. Was this just a collusion between a few employees or a larger network? Where did the money go through the shell companies? Were government officials also involved? The government has indicated that the role of some government employees is also under investigation, but names have not yet been revealed.

Summary

The government claims that all the money has been recovered. Despite this, the opposition continues to demand a CBI investigation.