The Haryana assembly was abuzz on Monday with discussions of an alleged 590 crore INR scam linked to IDFC First Bank. Opposition members pressed the government for answers, leading Chief Minister Nayab Singh Saini to assure the house that a high-level investigation has been initiated and that no guilty party will be spared.
This case came to light when a government department requested to close its account at IDFC First Bank and transfer funds to another bank. A significant discrepancy was found between the balance recorded and the actual funds present in the account.
Internal investigations by the bank revealed collusion among some employees at the Chandigarh branch, leading to fraudulent activities concerning government funds. The bank disclosed this fraud amounting to 590 crore INR in a regulatory filing on a Sunday, alongside filing a police complaint.
Issue Raised in Assembly
Leader of the Opposition, Bhupinder Singh Hooda, raised the issue in the assembly, questioning the government's response to discrepancies found by the bank. He labeled the situation as a significant financial irregularity and demanded transparency.
In response, CM Saini stated that once disparities were identified, the state government promptly decided to transfer funds from the concerned accounts to another bank. Furthermore, IDFC First Bank was immediately removed from the government work panel. He confirmed that the State Anti-Corruption Bureau (ACB) and the Vigilance Department are investigating the matter.
IDFC
Read More: An account closure application opens a 590 crore scam in IDFC Bank in Haryana
CM Saini declared, “Be it a bank employee or a government official found guilty, strict action will be taken against them.” He emphasized the government's commitment to transparency and the seriousness with which this matter is being treated.
CM's Major Statement
During discussions in the assembly about the 590 crore issue, CM Nayab Singh Saini explained that funds from 3-4 of our departments were deposited at IDFC First Bank. Upon discovering irregularities, a check of statements revealed transaction errors, after which remaining funds were transferred to legitimate banks, and the issue was further investigated. All involved in this corruption will face severe actions. Of the 590 crore involved, 450 crore were funds from Fixed Deposits. CM Saini assured that every penny will be reclaimed.
According to bank filings, a Haryana government department opted to close an account and transfer the remaining balance to another bank. Discrepancies between the recorded amount and actual balance were found during this process. Similar irregularities were discovered in other government accounts, prompting discussions between the bank and relevant authorities starting February 18th.
Bank's Clarification
The bank clarified that preliminary internal investigations indicate the matter is isolated to certain government-linked accounts operating through the Chandigarh branch. The bank reassured no other customers of this branch are affected.
Read More: IDFC Share Crash: The 590 crore fraud... Bank's shares crashed at opening, causing panic among investors
Currently, the 590 crore INR amount is noted as estimated fraud, with the final figure pending a 'reconciliation exercise' that involves verification of claims and potential recovery. The emergence of this case has raised questions about the state's financial oversight, banking protocols, and the security of government accounts. All eyes are now on the investigation outcomes.
