A large-scale financial irregularity amounting to nearly ₹590 crore has come to light at the Chandigarh branch of IDFC FIRST Bank, with investigators pointing to a former branch manager as the central figure in the alleged scheme.

According to the Haryana Anti-Corruption Bureau, money belonging to various Haryana government departments was siphoned off and redirected to a private company linked to the former manager’s immediate family.

Arrests Made

So far, four individuals have been taken into custody: former branch manager Ribhav Rishi, the branch’s ex-relationship manager Abhay, Rishi’s wife Swati Singla, and her brother Abhishek Singla.

Director General A.S. Chawla stated that Rishi and Abhay are believed to have masterminded the operation. Both had resigned from their roles approximately six months before the matter surfaced.

Investigators revealed that around ₹300 crore was transferred to a firm named Swastik Desh Projects. Company records show Swati Singla holding a 75% stake, with the remaining 25% owned by her brother. Authorities allege that the funds were subsequently routed elsewhere from this entity.

The accused are expected to be presented before a court as the probe continues.

How the Discrepancy Was Detected

The alleged fraud was first flagged when a Haryana government department sought to close its account and shift funds to another bank. During the reconciliation process, officials noticed inconsistencies between ledger entries and the actual available balance.

Further checks reportedly uncovered similar mismatches in other government-linked accounts handled by the same branch.

In a regulatory disclosure earlier this week, IDFC FIRST Bank acknowledged detecting what it termed fraudulent and unauthorised activities by certain employees at the branch, potentially in collusion with others.

Investigation Findings

Chawla said preliminary findings suggest a deliberate plan to move public funds across jurisdictions. He noted the geographical complexity: the bank branch is located in Chandigarh, the government departments operate within Haryana, and the receiving account was reportedly maintained at another bank branch in Mohali.

He added that senior bank officials were questioned regarding oversight mechanisms, especially how government accounts were being managed across state and Union Territory boundaries. The proximity of Chandigarh, Mohali and parts of Haryana was cited as a factor complicating the matter.

While investigators claim to have identified the broad method used to divert funds, they have refrained from sharing detailed operational aspects pending verification.

Bank’s Response

Amid the ongoing probe, IDFC FIRST Bank stated that it has fully reimbursed the Haryana government departments for the principal and interest amounts claimed, totalling ₹583 crore.

In a public statement, the bank emphasised its commitment to customer-first values, asserting that it chose not to delay repayment despite the continuing investigation. It described the swift settlement as consistent with its institutional principles and internal ethos.

Authorities have indicated that further action will be taken against all individuals found culpable as the investigation progresses.