The IDFC First Bank fraud case took a major turn after the Haryana State Vigilance Bureau arrested four accused for allegedly siphoning off Rs 590 crore of government funds through fraudulent banking transactions. Officials confirmed that the arrested include the alleged mastermind, two former bank employees, and two private individuals.
The arrested accused are Ribhav Rishi, Abhay Kumar, Swati Singla, and Abhishek Singla. Two of them previously worked with IDFC First Bank, while the other two ran a private partnership firm, investigators said.
Mastermind Used Shell Firms to Divert Government Funds
Investigators revealed that Ribhav Rishi, a former IDFC First Bank manager currently working with AU Small Finance Bank in Chandigarh, planned and executed the fraud. He allegedly created shell companies and misused banking systems to move government money without authorisation.
The scam surfaced at IDFC First Bank’s Chandigarh branch when officials detected suspicious transactions linked to Haryana government department accounts. A detailed probe later confirmed that the accused diverted hundreds of crores through manipulated banking processes.
Housing Scheme Accounts Became Target of the Fraud
According to the investigation, officials opened two bank accounts in September 2025 under the Mukhya Mantri Gramin Awas Yojana 2.0. Authorities deposited Rs 50 crore in one account and Rs 25 crore in another. Government rules required the funds to remain untouched until official approval.
In January, authorities ordered both banks to close the accounts and transfer the money with interest to another bank. AU Small Finance Bank transferred Rs 25.45 crore and closed the account. However, IDFC First Bank transferred only Rs 1.27 crore instead of the full amount. This mismatch immediately raised suspicion and triggered a large-scale investigation.
Bank Returns Rs 583 Crore to Haryana Government
After the fraud came to light, IDFC First Bank stated that it returned nearly Rs 583 crore to the Haryana government within 24 hours. The bank said that certain employees had fraudulently transferred the amount.
Haryana Chief Minister Nayab Singh Saini told the Assembly that the government recovered the full amount, including interest, through coordinated action with banking authorities.
Haryana Government Blacklists Banks, Opposition Demands CBI Probe
Following the exposure of the IDFC First Bank fraud case, the Haryana government removed IDFC First Bank and AU Small Finance Bank from handling government business. The Opposition demanded a CBI inquiry, citing the scale of the scam and the involvement of banking officials.
The Vigilance Bureau continues its investigation to fix responsibility, identify system failures, and trace any remaining funds linked to the fraud.
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