Ex-Branch Manager Accused of Orchestrating Rs 590-Crore Fraud at IDFC FIRST Bank

₹590-Crore Fraud at IDFC FIRST Bank: Ex-Branch Manager Among Four Arrested

A massive ₹590-crore fraud at IDFC FIRST Bank’s Chandigarh branch has led to the arrest of four people, including a former branch manager accused of siphoning funds from Haryana government department accounts into a private company run by his family members.

Haryana’s Anti-Corruption Bureau (ACB) has arrested former branch manager Ribhav Rishi, ex-relationship manager Abhay, Rishi’s wife Swati Singla, and her brother Abhishek Singla. According to ACB Director General AS Chawla, Rishi and Abhay are the main accused in the case. Both had resigned from the bank around six months ago.

Funds Routed Through Family-Owned Firm

Investigators found that nearly ₹300 crore was transferred to Swastik Desh Projects, a company in which Swati Singla holds a 75% stake and Abhishek Singla owns the remaining 25%. Authorities allege that funds were subsequently moved onward from this company. The accused are set to be produced before a court.

How The Fraud Was Detected

The fraud came to light after a Haryana government department sought to close its account at the Chandigarh branch and transfer its balance to another bank. During the process, officials discovered discrepancies between recorded balances and actual funds. Similar irregularities were later identified in other Haryana government-linked accounts.

In a regulatory filing earlier this week, IDFC FIRST Bank disclosed that it had detected a fraud of approximately ₹590 crore. The bank said the irregularities appeared to stem from unauthorised and fraudulent activities by certain employees, possibly in collusion with others.

Investigation Findings So Far

Chawla said the accused had devised a “master plan” to execute the fraud. He also flagged the geographical spread involved in the case — the bank branch located in Chandigarh, Haryana government departments operating within the state, and funds transferred to an AU Small Finance Bank branch in Mohali.

Questioning the oversight mechanisms, Chawla said investigators had asked senior bank management how government accounts were allowed to be opened outside the concerned state territory. Bank officials reportedly attributed it to the close proximity of Chandigarh, Mohali, and Haryana, which fall under two states and one Union Territory.

The ACB chief assured strict action against all those found involved, adding that while the modus operandi has been identified, detailed disclosures would follow after cross-verification as the probe remains at a preliminary stage.

Bank Says Full Amount Repaid

Amid the ongoing investigation, IDFC FIRST Bank has said it has repaid 100% of the amount claimed by the Haryana government departments. In a public statement, the bank said it had returned both principal and interest, amounting to ₹583 crore, despite the matter being under investigation.

“Now was the occasion to stand up and deliver when it truly matters and put our CUSTOMER FIRST principles in action. We are a principle-based bank, and mean it,” the bank said. It added that the departments had appreciated the bank’s prompt and professional response.