Manas Dasgupta
NEW DELHI, Feb 25: The State Vigilance and Anti-Corruption Bureau of Haryana has arrested four people, including the alleged 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 and related to the former employees, 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, his wife Swati Singla, and her brother Abhishek Singla.
According to Mr Chawla, behind the Rs 590-crore fraud at IDFC FIRST Bank’s Chandigarh branch was a former branch manager and funds from Haryana government departments’ accounts were funnelled into an account belonging to a company run by the former manager’s wife and brother-in-law. He said Ribhav and Abhay were the main accused in the case. Both of them quit their jobs at the branch around six months ago. A sum of nearly Rs 300 crore was transferred to a company called Swastik Desh Project in which Swati holds 75 per cent of the company’s shares and her brother Abhishek holds the remaining 25 per cent.
Earlier this week, IDFC FIRST Bank had disclosed in a regulatory filing that it had detected a fraud of about Rs 590 crore involving certain Haryana government-linked accounts operated through its Chandigarh branch. The bank said the fraud was prima facie the result of unauthorised and fraudulent activities carried out by some employees at the branch, possibly involving other individuals.
The bank said the fraud surfaced when a Haryana government department requested closure and transfer of its account balance to another bank. During the process, bank officials found discrepancies between the amount mentioned in the records and the actual balance. Similar discrepancies were identified in other Haryana government-linked accounts.
The main accused (Ribhav and Abhay) made the master plan, Chawla said. “A sum of Rs 300 crore went to Swastik Desh Projects and it was forwarded from there. It is surprising that the IDFC FIRST Bank branch is in Chandigarh, the Haryana government departments are in state territory, and the AU Small Finance Bank, where the money was transferred, has its branch in Mohali,” he said.
“We questioned the senior management whether they checked how a government account was being opened outside the state territory. They told us this problem because of the proximity of the three cities, and two states and one Union Territory are involved,” he said. “We assure you we will take strict action against everyone who is involved in this. The investigation is in a preliminary stage now. The modus operandi has come before us, but we cannot share details without cross-verification,” Chawla said.
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.
Amid the investigation, the bank has said it has already repaid 100 per cent of the amount claimed by Haryana government departments. In a statement published in newspapers on Wednesday, the bank has said it always upholds the highest principles and standards.
“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. We did not hold up the payment on account of the matter being under investigation. This is the DNA of IDFC FIRST Bank,” the bank said in its statement.
“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 Haryana Government as claimed, which works out to a net amount of INR 583 crore. The departments have sincerely thanked and appreciated the Bank for the positive approach, professional manner, and speedy and principle-based resolution,” the statement said.
