Haryana’s State Vigilance and Anti-Corruption Bureau arrested four individuals, including a former manager and ex-employee of IDFC First Bank, in connection with a ₹590-crore fraud involving government accounts. The arrests followed the registration of an FIR and the formation of a special investigation team.
The case centres on unauthorised transactions and suspected forgery related to Haryana government funds deposited in IDFC First Bank and AU Small Finance Bank.
According to The Indian Express, the arrested individuals are Ribhav Rishi, a former bank manager, Abhay Kumar, an ex-employee, and Chandigarh residents Swati Singla and Abhishek Singla.
Authorities issued a Look Out Circular against Ribhav Rishi to prevent him from leaving the country, citing his central role in the case. The FIR was registered at the Panchkula police station after a communication from Haryana Chief Secretary Anurag Rastogi.
As reported by Hindustan Times, the investigation revealed that Swati Singla and her brother Abhishek established a company, Swastik Desh Projects, allegedly used to divert government funds. The inquiry committee found evidence of forged signatures on cheques and debit notes processed by the bank, including a cheque where the amount in figures and words did not match but was still honoured. The committee also noted that AU Small Finance Bank had not fully cooperated with the inquiry.
As highlighted by Deccan Herald, the FIR invoked Section 13(2) of the Prevention of Corruption Act and several sections of the Bharatiya Nyaya Sanhita, including those related to criminal breach of trust, cheating, forgery, and conspiracy. The committee’s findings indicated procedural lapses and recommended a thorough police investigation. The Haryana government subsequently de-empanelled both IDFC First Bank and AU Small Finance Bank from handling government funds.
“We will ensure that all those responsible—bank employees, any private individual or any government employee or officer—are brought to justice. Strict action will be taken against the guilty,” Chief Minister Nayab Singh Saini stated in the Assembly.
Further details showed that the initial probe began after discrepancies were found when the Development and Panchayat Department directed the closure of accounts and transfer of funds to Axis Bank. While AU Small Finance Bank transferred the full amount, IDFC First Bank transferred only a fraction, prompting the department to dispute the account status and statement provided by the bank.
The recovery process was swift, with Chief Minister Nayab Singh Saini informing the Assembly that ₹556 crore, including interest, was returned to government accounts within 24 hours of the fraud’s discovery. The Chief Minister emphasised that the funds represent public money and assured strict action against all involved parties.
Ongoing investigations have traced nearly ₹100 crore to the firm owned by the Singla siblings. Authorities have issued Look Out Circulars for both siblings and the former bank manager. The Special Investigation Team continues to examine the roles of bank employees, private individuals, and public servants in the diversion of funds.
“The key questions before investigators are whether the bankers diverted these funds on the basis of an authorisation letter from the government department concerned or acted on their own,” an official was quoted as saying.
Initial arrests were made on 24 February 2026, with the Haryana government forming a committee to examine the fraud. Opposition leaders have called for a Central Bureau of Investigation (CBI) probe to ensure accountability and transparency in the ongoing investigation.
In response to the incident, IDFC First Bank stated that it had paid out 100% of the principal and interest to the Haryana government departments involved, amounting to ₹583 crore. The bank affirmed its commitment to cooperate with authorities and pursue recovery from those responsible for the fraud.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.