Ex-branch manager, 3 more nabbed in Rs 590-crore IDFC First Bank case in Haryana

The arrests were made on Tuesday evening as part of the ongoing investigation of the IDFC First Bank fraud case, officials said.

Chandigarh: Haryana's State Vigilance and Anti-Corruption Bureau has arrested four people, including the masterminds behind the Rs 590-crore IDFC First Bank fraud, officials said on Wednesday.

Of the four arrested, two are ex-IDFC First Bank employees and two are private persons who own a partnership firm, they said.

The arrests were made on Tuesday evening as part of the ongoing investigation of the IDFC First Bank fraud case, they said.

Speaking to the media in Panchkula, ACB director general A S Chawla identified the arrested individuals as Ribhav Rishi, Abhay Kumar, Swati Singla, and Abhishek Singla.

While Rishi and Abhay are former employees of the IDFC First Bank, Swati and Abhishek are siblings who ran a firm called the Swastik Desh Project.

Rishi was the head of the bank's Sector 32 branch till six months ago when he left the job.

Abhay, the bank's relationship manager, quit the job around August last year, Chawla said.

Rishi and Abhay masterminded the fraud, he said.

He said that, in all, Rs 300 crore was transferred to the Swastik Desh Project's bank account.

The officer said the firm's main owner is Swati Singla, who holds 75 per cent shares in it, while her brother Abhishek Singla holds the remaining 25 per cent.

"Swati Singla is Abhay's wife. We have arrested all four," Chawla said.

Earlier, the ACB registered an FIR in connection with the fraud, while the state government constituted a committee to probe it.

A Special Investigation Team was constituted under the overall supervision of senior IPS officer Ganga Ram Punia, Chawla said.

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

On Tuesday, Chief Minister Nayab Singh Saini said in the Assembly that the government will spare no one involved in the fraud.

Leader of Opposition Bhupinder Singh Hooda and Haryana Congress chief Rao Narender Singh have demanded a CBI probe in the matter.

On Tuesday, IDFC First Bank said it had paid out 100 per cent of the principal and interest to the defrauded Haryana government departments, releasing a total of Rs 583 crore.

Earlier, Saini, in the Assembly, said that the irregularities were primarily related to the bank's Chandigarh branch and involved alleged collusion at the middle and lower levels.

Following an inquiry, the ACB lodged a case 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.

A committee formed by the director of the development and panchayats department of Haryana recommended a police investigation after uncovering alleged forgery and procedural lapses involving officials from both IDFC First Bank and AU Small Finance Bank.

The committee was formed on February 11 to inquire into the matter related to IDFC Bank First accounts regarding "mismatch/issues."

The findings of the committee have been included in the FIR registered by the State Vigilance Anti-Corruption Bureau.

On February 18, the Haryana government officially de-empanelled IDFC First Bank and AU Small Finance Bank from participating in government business.