BankingFraud – Haryana Registers FIR in Rs 590 Crore Case
BankingFraud – The Haryana government has initiated a formal criminal investigation into an alleged Rs 590 crore financial irregularity linked to government accounts maintained at two private lenders in Chandigarh.
The Haryana Vigilance and Anti-Corruption Bureau has lodged a First Information Report in connection with suspected discrepancies involving accounts operated by state departments at the Chandigarh branches of IDFC First Bank and AU Small Finance Bank. A senior government official confirmed the development on Tuesday, marking the beginning of a detailed probe into the matter.
Legal Action Initiated Under Anti-Corruption Laws
According to officials, the case has been registered against certain bank employees, public servants and other unidentified individuals. The FIR invokes provisions of the Prevention of Corruption Act, including Section 13(2), along with multiple sections of the Bharatiya Nyaya Sanhita relating to criminal breach of trust, forgery and related financial offences.
Investigators are expected to examine transaction records, internal communications and departmental documentation to determine the chain of responsibility. Authorities have indicated that accountability will be fixed based on evidence gathered during the inquiry.
Discrepancies Detected by Government Departments
Chief Minister Nayab Singh Saini informed the Vidhan Sabha during the ongoing Budget Session that the issue surfaced after departmental records did not align with statements provided by the bank. He said the mismatch was identified due to close monitoring of financial transactions by state departments.
The government responded swiftly by removing the concerned bank from its empanelled list even before formally taking up the matter for review. Officials were instructed to transfer the entire deposited amount, along with applicable interest, to a nationalised bank to safeguard public funds.
Bank Communication and Internal Action
The Chief Minister also told the House that IDFC First Bank had communicated with the Securities and Exchange Board of India (SEBI), acknowledging irregularities attributed to certain employees. The bank has reportedly initiated internal disciplinary proceedings against those suspected of involvement.
According to information shared in the Assembly, the bank wrote to the regulator on February 21. However, the state government had already acted on February 18 by discontinuing its association with the bank and ordering the transfer of funds.
Reassuring lawmakers, Saini stated that the government’s money remains secure. “Every rupee will be recovered,” he said, adding that the ongoing investigation would establish whether the wrongdoing was limited to bank staff or involved others.
Funds Placement and Banking Practices Explained
Addressing concerns about why significant sums were parked in private banks, the Chief Minister clarified that several departments had placed funds in fixed deposits as part of routine financial management. He noted that empanelling banks for such purposes is a long-standing administrative practice and not unique to the current government.
He further said that during previous administrations as well, including the tenure of the Congress government, departmental funds were maintained with various banks. Financial institutions are periodically reviewed and added to or removed from the approved list based on regulatory and operational considerations.
Opposition Raises Questions in Assembly
Leader of Opposition Bhupinder Singh Hooda described the alleged fraud as a serious issue requiring firm action. He criticised the government for what he termed a delayed response and demanded stricter measures against those responsible.
Hooda alleged that accounts of 18 government departments were manipulated in what he called a large-scale financial scam. He urged the administration to ensure transparency and swift accountability, stating that public confidence depends on decisive corrective steps.
High-Level Committee to Oversee Probe
The state government has directed the formation of a high-level committee to conduct a comprehensive review of the transactions and administrative procedures involved. The committee is expected to submit a detailed report outlining lapses, if any, and recommending safeguards to prevent recurrence.
Officials have maintained that the investigation will proceed without bias. The Vigilance Bureau is likely to record statements from bank representatives, departmental officers and other relevant stakeholders in the coming days.
As the probe gathers pace, the focus remains on tracing the flow of funds and establishing whether the discrepancies stemmed from procedural lapses, deliberate manipulation or coordinated misconduct.