IDFC First Bank fraud case: 11 accused arrested so far, 100 bank accounts frozen

Eleven accused have been arrested so far, including six bank employees, four private individuals, and one Government official, as part of the ongoing investigation into a fraud case involving the IDFC First Bank by the Haryana State Vigilance and Anti-Corruption Bureau.

According to the Bureau, a breakthrough has emerged in the case, revealing that several fake firms and companies were created by the prime accused to illegally divert Government funds into multiple bank accounts.

Preliminary investigation has indicated that money from the accounts of various Government departments was unauthoritatively transferred to accounts operated in the names of these fictitious companies, the ACB said.

Some of the entities identified during the probe include RS Traders, Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd, and Swastik Desh Project, among others, an official statement said.

Requests had been sent to freeze more than 100 bank accounts suspected to be linked to the fraudulent transactions, which have been frozen, it said.

Private lender IDFC First Bank had disclosed a Rs 590 crore fraud committed by certain employees and others at a branch in Chandigarh in a specific set of accounts held by the Haryana Government.

Charu Bali, ADGP, State Vigilance and Anti-Corruption Bureau, said an FIR was registered on February 23 in Panchkula, following directions from the Haryana Government. A Special Investigation Team (SIT) was constituted under the supervision of senior IPS officer Ganga Ram Punia to probe the matter.

The investigation has so far revealed the involvement of 12 bank accounts linked to eight Government departments. Out of these, 10 were maintained at the IDFC First Bank’s branch in Sector 32, Chandigarh, and two at the AU Small Finance Bank, the ADGP said. So far, 11 accused have been arrested, including six bank employees, four private individuals, and one Government official. Among them, 10 are currently in judicial custody, while one is on police remand. The investigation team has raided 16 locations, leading to the recovery of crucial documents related to property purchase, reportedly by using the proceeds of crime. Additionally, more than 25 electronic devices, including mobile phones and laptops, have been seized and sent for examination to the cyber forensic laboratory.

The authorities have also seized six luxury vehicles, including three Toyota Fortuners, two Innovas, and one Mercedes, suspected to have been purchased using illicit proceeds.

The probe has revealed the involvement of several Government officials/employees and private individuals. Upon confirmation, action will be taken against the culprits, the statement said.

Additionally, 10 properties have been identified which are suspected to have been purchased using the proceeds of crime.

The accused allegedly manipulated banking records by preparing fake debit memos or transferring funds without any valid debit memo or cheque authorisation.

The investigators also found that forged bank statements were prepared to facilitate the transfer of funds to multiple accounts directly or indirectly linked to the accused or their relatives.

A large volume of records has been obtained from banks and concerned departments, which are being analysed to identify both authorised and unauthorised transactions and trace the complete fund flow.