Haryana govt employee arrested in Rs 590 crore IDFC first bank fraud

The State Vigilance and Anti-Corruption Bureau on Saturday arrested a Haryana government employee in connection with the Rs 590 crore fraud at IDFC First Bank, officials said.

The accused, employed with the panchayats department, was produced before a Panchkula court and remanded to six days of police custody. His role is under investigation in the fraud that surfaced after the private lender disclosed irregularities at its Chandigarh branch involving state government-linked accounts.

Earlier this week, the Anti-Corruption Bureau arrested four persons , including two former bank employees and two private individuals allegedly linked to a partnership firm that received a substantial portion of the siphoned funds. A Special Investigation Team (SIT) headed by senior IPS officer Ganga Ram Punia has been constituted to probe the case.

Chief Minister Nayab Singh Saini informed the Assembly that nearly Rs 556 crore, including Rs 22 crore in interest , was recovered within 24 hours of the fraud coming to light. Director-General of the Bureau A S Chawla said the money trail is complex and chartered accountants are being engaged to assist the probe.

Leader of Opposition Bhupinder Singh Hooda and Haryana Congress chief Rao Narender Singh have demanded a CBI inquiry into the case.

The bank had stated that the fraud was confined to certain Haryana government-linked accounts at its Chandigarh branch and did not impact other customers. The irregularity came to light after a government department sought closure of its account and transfer of funds, revealing a discrepancy of Rs 590 crore.