IDFC FIRST Bank fraud of 590 crores (Courtesy: CNBC TV18)
IDFC First Bank had recently reported a fraud of ₹590 crore at one of its Chandigarh branches, involving accounts linked to various departments of the Haryana government. The irregularities came to light when a government department asked the bank to close an account and transfer its funds to another bank, triggering a discrepancy between the balance shown in the bank’s records and the amount claimed by the account holder. Subsequent checks involving other government accounts revealed similar mismatches, suggesting unauthorised and fraudulent activities in those accounts.
It has been discovered that these funds were being funnelled into accounts of a bank called Swastik Desh Projects, run by the wife of the ex-branch manager of IDFC First Bank, Ribhav Rishi. Ribhav and his wife Swati Singla, her brother-in-law, Abhishek Singla and another former branch manager, Abhay Kumar, have been arrested.
How was the fraud carried out?
According to initial findings, the siphoning was carried out through forged cheques and signatures. Some instruments lacked proper memo numbers or dispatch records, and at least one cheque had a numerical figure that contradicted its written amount. However, it was still processed and cleared. The stolen funds were traced back to Swastik Desh Projects, from where these funds were being channelled through multiple accounts, spanning banks in Chandigarh, Mohali and Panchkula. While Swati holds 75% of the funds, her brother holds 25%.
Amidst this chaos, the bank’s response to the crisis has been good. It has already paid back all the amount to the Haryana Government, inclusive of principal and interest. In a statement published in newspapers, the bank has said it always upholds the highest principles and standards. The Bank reiterated to the public its validity by claiming that it is a principle-based bank. Not only this, IDFC First did not uphold the due payments, even if the investigations were ongoing.
“Hence, even though the investigation in the matter is ongoing, we have paid out 100% of the principal and interest to the relevant departments of the Haryana Government as claimed, the bank said. A net amount of 583 crores was repaid.
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