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Haryana Recovers Rs 578 Cr Bank Fraud in 24 Hours; 4 Employees Suspended

Haryana Chief Minister Nayab Singh Saini announced the complete recovery of Rs 578 crore lost in a fraud at an IDFC First Bank branch, with the funds returned within 24 hours. The fraud, involving state government accounts, was allegedly executed by four or five middle and lower-level bank employees in Chandigarh. IDFC First Bank has suspended four employees and launched an investigation to recover funds through legal action. The Reserve Bank of India has stated that this appears to be an isolated incident and not a systemic failure in the banking sector.

Key Points: Haryana Recovers Rs 578 Cr Bank Fraud Within a Day

  • Full Rs 578 crore recovered in 24 hours
  • Four bank employees suspended for fraud
  • High-level committee to investigate and suggest safeguards
  • RBI says incident is not a systemic issue
2 min read

Haryana CM Saini confirms recovery of Rs 578 cr bank Fraud within 24 hours

Haryana CM confirms full recovery of Rs 578 crore lost in IDFC First Bank fraud, including interest. Four bank employees suspended.

"The entire amount lost... has been deposited back into our accounts within just 24 hours. - Nayab Singh Saini"

Chandigarh, February 24

Haryana Chief Minister Nayab Singh Saini on Tuesday confirmed that the Rs 578 crore lost in a fraud at IDFC First Bank, including funds of state departments and boards, was fully recovered within 24 hours, with Rs 556 crore deposited and Rs 22 crore interest returned.

He added that a high-level committee will investigate and recommend measures to prevent future incidents.

Speaking at the Assembly, CM Saini said,"I want to clarify before this House that the entire amount lost in yesterday's incident, including the funds of some Haryana government departments and boards and corporations, has been deposited back into our accounts within just 24 hours. Speaker, approximately Rs 556 crore was deposited by the bank, of which we also received interest of approximately Rs 22 crore. The interest has also been returned. We have deposited that amount and recovered all of that money within just 24 hours...Four or five middle and lower-level employees of a bank branch in Chandigarh colluded to carry out this operation."

He further stated that strict action will be taken against any government official or employee found involved in the matter.

"Strict action will be taken against any government official or employee involved in it... We would form a high-level committee that would not only hold the officers and employees involved in this matter accountable but would also make suggestions to prevent future situations like the one that has arisen today," CM Saini added.

IDFC FIRST Bank has suspended four employees after it discovered fraudulent activity involving approximately Rs 590 crore in certain Haryana government accounts at its Chandigarh branch, the bank said in its official stock exchange filing.

The bank has launched an investigation and plans to recover the funds through legal and disciplinary action.

The Reserve Bank of India (RBI) Governor Sanjay Malhotra has said the Rs 590 crore fraud reported at one of the IDFC First Bank branches is not a systemic kind of issue, and the central bank is watching the developments.

- ANI

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Reader Comments

P
Priyanka N
Rs 578 crore! That's public money. Thank God it was recovered, but this is terrifying. Just 4-5 bank employees could do this? Our banking security needs a complete overhaul. The committee's recommendations must be made public and implemented without delay.
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Aman W
Good news, but let's not celebrate just yet. Getting the money back is one thing, ensuring accountability is another. "Strict action" should mean more than just suspension. These employees must face criminal charges and the full force of the law. Jai Hind.
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Sarah B
As someone who works in finance, this is shocking. The internal controls at that branch must have been non-existent. The RBI Governor says it's not systemic, but it points to serious lapses in supervision. Hope other banks are conducting urgent audits.
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Vikram M
Recovery is great, but the story feels too neat. ₹578 crore recovered in 24 hours with interest? That's unprecedented. While I want to believe it, there should be an independent audit to confirm everything is as stated. Public trust is crucial.
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Nisha Z
This is why we need stronger digital safeguards and transparency in government transactions. If this was a tech fraud, it could have been much harder to trace. The committee should focus on blockchain or other secure tech for high-value transfers. 💡

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