How An Ex Branch Manager Masterminded 590-Crore Fraud At IDFC FIRST Bank

Investigators say the alleged fraud was carefully orchestrated by the main accused, Ribhav and Abhay, who are believed to have designed the entire scheme. According to officials, nearly ₹300 crore was first transferred to Swastik Desh Projects and later routed through other accounts as part of the suspected financial trail.

Speaking on the matter, Chawla explained that the case involves institutions and departments spread across three neighbouring regions. The branch of IDFC FIRST Bank linked to the transactions is located in Chandigarh, while the concerned Haryana government departments are based within the state. The funds were later moved to an account in AU Small Finance Bank at a branch in Mohali.

Chawla said investigators questioned senior officials of the banks about how a government account could be opened outside the state’s territorial jurisdiction. According to him, bank officials responded that the situation may have arisen due to the close proximity of Chandigarh, Mohali, and parts of Haryana, where two states and a Union Territory operate closely together.

He assured that strict action would be taken against anyone found responsible. However, he emphasised that the probe is still in its early stages. While investigators believe they have identified the suspected modus operandi used in the fraud, further details are being withheld until all evidence is properly verified.

Bank Responds

Amid the ongoing investigation, IDFC FIRST Bank has stated that it has already repaid the entire amount claimed by the Haryana government departments.

In a statement published in newspapers, the bank said it acted promptly to uphold its “Customer First” principles. It noted that despite the case being under investigation, it chose not to delay the payment.

According to the bank, 100% of the principal amount along with interest — totalling ₹583 crore — has been paid back to the relevant Haryana government departments. The bank also said the departments appreciated the swift and professional handling of the matter.

The bank added that the decision reflects its commitment to maintaining high ethical standards and ensuring customers are protected, even while the investigation continues.

News Source : Information for this article was gathered from a variety of reliable news outlets.