FIR in Rs 590 cr bank fraud; finance nod must for Haryana depts to open a/c in pvt bank

Chandigarh: Haryana anti-corruption bureau (ACB) has filed a criminal case in connection with the alleged Rs 590 crore fraud involving IDFC First Bank and 18 state departments, while the state made finance approval mandatory for any govt organisation that seeks to open an account in a corporate or private bank.Chief minister Nayab Singh Saini said govt is closely monitoring the investigation.
All departments, boards, and autonomous bodies have been directed to immediately transfer balances and close accounts with IDFC First Bank and AU Small Finance Bank. Both banks have been de-empanelled from handling state business.According to directions issued by additional chief secretary (finance), departments must provide specific reasons for not choosing a nationalised bank and heads of departments will be held personally responsible for unauthorised accounts. The finance department pointed out that some banks kept funds in low-interest savings accounts despite instructions to place them in fixed deposits. Monthly reconciliations are now mandatory.All entities have been asked to complete account reconciliations by March 31, with a certified compliance report due to the finance department by April 4.DGP A S Chawla on Monday said an FIR was registered following a complaint from chief secretary Anurag Rastogi's office. "In compliance with Haryana govt's decision, a case has been registered and investigation initiated against employees of IDFC First Bank and AU Small Finance Bank and other public servants / private individuals under Section 13(2) of Prevention of Corruption Act 1988 and Sections 316(5), 318(4), 336(3), 338, 340(2) and 61(2) of BNS," said a govt release.Chawla said the case is an ‘open-ended investigation'. "We shall look into every aspect and nail all those involved. A special team has been assigned to probe it," the DGP said.The controversy triggered heated debates in Haryana assembly, with leader of opposition Bhupinder Singh Hooda accusing govt of procrastinating and adopting a negative attitude. Saini responded by saying: "A major portion of the amount — approximately Rs 450 crore — is held in fixed deposits, and govt is confident of recovering the full sum… Whether institutions, departments, officials, or bankers, anyone found guilty will face prosecution."IDFC First Bank reported the Rs 590-crore discrepancy in deposits held at its Chandigarh branch and suspended four employees. Investigations are now expected to put authorised officers — those responsible for opening accounts and diverting funds — under the scanner.