The 'closure' that uncovered a Rs 590-crore bank fraud in Chandigarh

Chandigarh: It was a routine account closure request at IDFC First Bank Private Limited in Chandigarh that unearthed the country’s biggest banking fraud of the year, estimated at Rs 590 crore.

At least four accused, including managerial staff, are alleged to have siphoned off the funds. The scale of the fraud even surpasses IDFC’s third-quarter net profit, which stood at Rs 503 crore.

Interestingly, the scam did not involve digital transactions; instead, the fraudsters turned to the fading instrument of cheques to dupe depositors, mainly 18 departments of the Haryana government and the Chandigarh administration.

Recognising the scale of the fraud, the reputation at risk and mounting criticism of the BJP government in Haryana, IDFC First Bank took upon itself to pay back Rs 590 crore to the affected government depositors from its own treasury, citing its ‘customer-first’ policy. Whether such a ‘quick-fix’ remedy would have been extended to ordinary account holders in the event of fraud is a different story.

The state Anti-Corruption Bureau has arrested four people in connection with the case — former branch manager Ribhav Rishi, his wife Swati Singla, brother-in-law Abhishek Singla, and former IDFC relationship manager Abhay. Director General of the Bureau AS Chawla said Ribhav and Abhay are the main accused. Both had resigned from the branch about six months ago.

On Wednesday, a local court in Panchkula remanded the accused to seven days of police custody for further investigation.

Modus operandi

The scheme was meticulously planned, yet daring in execution. The accused routed funds through multiple cheques and debit notes processed by the bank, all bearing forged signatures. The debit notes also had discrepancies, lacking memo numbers and dispatch details. The siphoned money was funnelled into an account belonging to a company run by the former manager’s wife and brother-in-law.

Investigators revealed that nearly Rs 300 crore was transferred to a company called Swastik Desh Projects, where Swati holds a 75% stake and Abhishek owns the remainder.

Police are probing whether the diverted funds were used, or intended to be used, for stock market trading and real estate ventures.

The fraud came to light in January this year when the Haryana government department requested the closure of its bank account with IDFC. It also sought a transfer of the entire amount to another bank provided by the government.

When the process started, bank officials noticed glaring inconsistencies in the amount mentioned in the records and the actual balance available with the bank. Similar discrepancies were detected in other Haryana government-linked accounts when scrutiny began.

According to records, two accounts were opened on September 26, 2025, by the Haryana government — one with IDFC First Bank and the other with AU Small Finance Bank. An initial sum of Rs 50 crore and Rs 25 crore was transferred into these accounts. 

In January, the government moved to close the accounts, an action that unearthed the scam. 

MEGA SCAM No digital transactions involved; fraudsters used cheques to siphon funds Money transferred into account of firm run by ex‑manager’s wife, brother‑in‑law 18 depts of Haryana govt and Chandigarh administration duped Scam surfaced when govt moved to close the account