All money lost in IDFC First Bank fraud recovered: Haryana CM; Cong demands CBI probe

Chandigarh, Feb 24 (PTI) Haryana Chief Minister Nayab Singh Saini on Tuesday informed the Assembly that nearly Rs 556 crore, including Rs 22 crore in interest, has been recovered in the IDFC First Bank fraud case within 24 hours.

The state's Anti-Corruption Bureau has registered an FIR in the matter while the state government has constituted a committee to examine the matter and fix responsibility, he said.

"Nearly Rs 556 crore, including nearly Rs 22 crore in interest, came back within 24 hours," Saini said, adding that the entire amount pertaining to various state government departments, boards and corporations has been credited back to their respective accounts.

On Sunday, the IDFC Bank disclosed a Rs 590-crore fraud committed by its employees and others in accounts held by the Haryana government.

Saini said the irregularities were primarily related to the bank's Chandigarh branch and involved alleged collusion at the middle and lower levels.

He said the swift recovery was made possible through coordinated efforts between the state government and senior bank officials.

Saini made it clear that the state government, in coordination with the bank, will ensure that stringent action is taken against all those found responsible.

The government will ensure that all those involved -- be it a bank employee, private individual or even a government employee -- are not spared, he said.

Leader of Opposition Bhupinder Singh Hooda and Haryana Congress chief Rao Narender Singh, while speaking to reporters outside the Assembly, demanded a CBI probe in the matter.

On Monday, Saini said the state's Anti-Corruption Bureau (ACB) would conduct an in-depth probe into the fraud.

The ACB has registered a case against the employees of IDFC First Bank and AU Small Finance Bank, along with unidentified public servants and private persons.

A senior official of ACB on Tuesday said the FIR has been lodged 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.

The Haryana government had, on February 18, de-empanelled IDFC First Bank and AU Small Finance Bank for government business with immediate effect till further orders and said that no government funds shall be parked, deposited, invested or transacted through these institutions.

AU Small Finance Bank has denied any wrongdoing in the alleged fraudulent opening of accounts after Haryana de-empanelled it from undertaking any government business. It said the accounts in question were opened after completing all necessary KYC checks and authorisations.

On Tuesday, the chief minister said in the Assembly that the committee has been constituted to examine the matter in detail and fix accountability of the employees and officers concerned.

The committee, which shall submit its report to the state government within a month, will be headed by Arun Kumar Gupta, Additional Chief Secretary of the Finance Department.

The committee would examine all aspects relating to the empanelment of IDFC First Bank and AU Small Finance Bank, the decision taken by the concerned departments to deposit substantial government funds in these banks, issues relating to non-reconciliation by departments, any lapses, procedural deficiencies, or systemic failures in this regard.

The committee shall also examine various provisions of the state's banking policy and its enforcement, address compliance with the prescribed policy framework by the department, identify accountability, and recommend appropriate corrective and preventive measures to ensure that such lapses do not reoccur.

Taking a dig at the Congress, Saini said in the House that during the party's rule, scams used to be hushed up and no one used to be held accountable, whereas the BJP government is working with zero tolerance towards corruption.

The era of suppressing corruption files is over, Saini said, adding that the present dispensation functions on the principle of complete transparency. PTI SUN VSD RHL