IDFC First Bank case: FIR registered, Haryana ACB conducts probe

Chandigarh: A committee formed by the director of the development and panchayats department of Haryana has recommended a police investigation after uncovering alleged forgery and procedural lapses involving officials from both IDFC First Bank and AU Small Finance Bank. This committee was formed on February 11 to inquire into the matter related to IDFC Bank First accounts regarding "mismatch/issues".

The findings of this committee have been included in the FIR registered by the State Vigilance Anti-Corruption Bureau, following directives from the state government.

On Sunday, the IDFC First Bank disclosed a Rs 590-crore fraud committed by its employees and others in accounts held by the Haryana government.

The Anti-Corruption Bureau is currently conducting a probe into this matter.

An FIR in the matter has been lodged under Section 13 (2) of the Prevention of Corruption Act, and Sections 316(5) (criminal breach of trust) 318(4) (cheating), 336(3) (forgery), 338 (forgery of valuable security), 340(2) (forged document) and 61(2) (criminal conspiracy) of the Bharatiya Nyaya Sanhita.

According to the FIR, "two accounts were opened on September 26, 2025, in IDFC First Bank and AU Small Finance Bank under the MMGAY-2.0 scheme." Initially, a fund of Rs 50 crore and Rs 25 crore were transferred to the IDFC First Bank and AU Small Finance Bank, respectively, according to their fund limits in accordance with the Finance Department instructions dated July 12, 2024.

The records presented to the committee indicated that no approvals for fund utilisation from the competent authority had been issued at any stage, and the entire amounts of Rs 50 crore and Rs 25 crore were supposed to remain secure in the accounts during the entire duration.

Letters dated January 13, 2026, were sent to both IDFC First Bank and AU Small Finance Bank to close the accounts and to transfer the available funds to the tune of Rs 50 crore and Rs 25 crore, respectively, along with interest accrued, and transfer the amounts to the AXIS bank.

In response, AU Small Finance Bank transferred Rs 25,45,84,863 to Axis Bank and closed the account on January 16, 2026. However, IDFC First Bank transferred only Rs 1,27,44,689 to Axis Bank and proceeded to close the account, despite the closure request clearly specifying that an amount of Rs 50 crore, along with accrued interest, was to be transferred, according to the FIR.

Upon receiving this information, the department recorded its disagreement with the status of the account and the statement provided by IDFC First Bank.

"For the purpose of further investigation into this matter concerning IDFC First Bank, the account opening form, log details and voucher details of all the transactions were sought from the bank. The bank submitted these details on February 16, 2026.

The senior IDFC First Bank officials, who attended the inquiry committee proceedings on February 16, 2026, were directed to submit their written statements along with the details being presented to the inquiry committee on February 16, 2026. The officials promised to submit the said statement after due vetting and following SOPs of the bank, but no such statement has been submitted by the said officials to date," the FIR states.

It further states, "The records presented to the committee show that: Multiple cheques along with debit notes were processed by the Bank for payment transfers. These cheques, prima facie, bear forged signatures of the then Director General (Developments and Panchayats), D.K. Behera, despite the fact that he had relinquished charge on 28.10.2025." It further mentions that the debit notes attached to the cheques do not have any memo number or dispatch number, and they again seem to contain a forged signature.

It has also been observed that one of the cheques processed by the bank mentions the amount in figures as Rs 2.50 crore, whereas the amount in words is written as "Rupees twenty five", which has been honoured and processed by the bank, indicating a serious discrepancy.

After reviewing the available records, the committee reached a unanimous conclusion: according to the documents, the department utilised debit notes for fund transfers under the scheme for transactions approved by the competent authority. "No fund transfer instructions were issued against these two bank accounts by this department as per the record in the files.

"...Therefore, it seems to be a case of forgery and procedural lapse by both IDFC First Bank and AU Small Finance Bank officials, and it is recommended that a thorough investigation may be carried out in this matter by the state police," states the report of the committee, according to the FIR.

Earlier on Tuesday, Haryana Chief Minister Nayab Singh Saini had informed the state Assembly that the government will ensure that anybody who is involved, be it a bank employee, private individual or even a government employee -- will not be spared.

On February 18, the Haryana government officially de-empanelled IDFC First Bank and AU Small Finance Bank from participating in government business, effective immediately and until further notice. As a result, no government funds will be deposited, invested, or transacted through these banks, according to an official circular.