CHANDIGARH: A day after IDFC First Bank revealed a Rs 590-crore fraud linked to Haryana government accounts, the opposition Congress raised the issue in the state Assembly during the ongoing Budget session on Monday. Chief Minister Nayab Singh Saini announced an inquiry, stating that the State Anti-Corruption Bureau and the Vigilance Department have been tasked with investigating the matter.
Meanwhile, RBI Governor Sanjay Malhotra said that the central bank is closely watching the developments and that there is no systemic risk.
Haryana Chief Minister Saini assured the House that a probe has been ordered and that the State Anti-Corruption Bureau and Vigilance Department are investigating the case. He informed the Assembly that the government came to know about the matter four to five days ago, following which an investigation was initiated.
“Be it a bank employee or any government employee, anyone found involved will not be spared and strict action will be taken,” Saini told the House.
He further said that if the bank is found responsible, strict action will be taken against it as well. He noted that while banks must maintain credibility, accountability will be fixed on all parties found guilty once the investigation is complete.
Raising the issue during Zero Hour, Leader of the Opposition Bhupinder Singh Hooda questioned the state government’s role. He said the bank had already taken action at its level and informed regulatory authorities about internal discrepancies. He asked the government to clarify whose negligence led to the situation and what steps had been taken so far.
“It has suspended its employees. What is the state government doing?” he asked.
Hooda also pressed for transparency, demanding that responsibility be fixed once the probe is complete.
Saini reiterated that every person found responsible would be held accountable. “We are investigating the matter very seriously. The Anti-Corruption Bureau is probing the case. Our government works in a transparent manner. This is not an issue we will take lightly,” he added.
The Haryana government has de-empanelled IDFC First Bank and AU Small Finance Bank from conducting government business after IDFC First Bank disclosed the Rs 590-crore fraud in Haryana government accounts. AU Small Finance Bank has denied any wrongdoing.
The bank pegged the discrepancy at around Rs 590 crore, comprising Rs 490 crore identified following reconciliation and an additional Rs 100 crore that was “self-identified” through internal checks. The Managing Director indicated that the amount is unlikely to increase.
According to the bank, the irregularity is restricted to a specific cluster of government-linked accounts belonging to the Haryana government, all managed through its Chandigarh branch. The bank clarified that the issue is isolated and does not affect other customers at the branch.
In a related development, RBI Governor Sanjay Malhotra stated that the central bank is closely monitoring the situation, emphasizing that there is no threat to the broader financial system.