IDFC Bank Fraud 2026: How ₹590 Crore Vanished, 4 Arrested

IDFC Bank Fraud: Four Arrested in ₹590 Crore Case

The Haryana State Vigilance and Anti-Corruption Bureau has arrested four individuals in connection with a ₹590 crore fraud detected at the Chandigarh branch of IDFC First Bank. The case involves the alleged siphoning of funds from Haryana government department accounts. Among those arrested are two former bank employees who are believed to have masterminded the operation. The investigation, which is still in its preliminary stages, has uncovered a complex web of collusion, forgery, and unauthorized transactions.

The Key Accused and Their Roles

On the night of February 24, 2026, the anti-corruption bureau took four people into custody. The primary accused are Ribhav Rishi, who was the head of the bank's Sector 32 Chandigarh branch until about six months ago, and Abhay Kumar, a former relationship manager who resigned in August 2025. According to investigators, these two former employees were the main conspirators. The other two arrested are Swati Singla, who is Abhay Kumar's wife, and her brother, Abhishek Singla. They are the proprietors of a firm named Swastik Desh Projects, which was allegedly used to channel the misappropriated funds.

Modus Operandi: A Trail of Forgery and Deceit

The investigation has revealed that the fraud was not a sophisticated digital crime but was executed through traditional methods of forgery and collusion. Funds from various Haryana government accounts, held as fixed deposits with IDFC First Bank, were systematically diverted. A significant portion, approximately ₹300 crore, was transferred to an account held by Swastik Desh Projects at AU Small Finance Bank's Mohali branch. Swati Singla holds a 75% stake in this company, with her brother Abhishek holding the remaining 25%. The transfers were allegedly authorized using forged signatures of government officials and fabricated debit notes.

Uncovering the Discrepancies

The fraud came to light when a Haryana government department requested the closure of its account to transfer the balance to another bank. During this process, officials discovered a significant mismatch between the balance recorded in their books and the actual amount held by the bank. This triggered an internal inquiry, and similar discrepancies were soon found in other government-linked accounts at the same branch. On February 11, 2026, the Haryana development and panchayats department constituted a committee to probe the matter, which confirmed the unauthorized transactions.

Findings of the Inquiry Committee

The internal inquiry report detailed serious procedural lapses and forgery. It found that IDFC First Bank processed transactions using the forged signature of a former Director General, D.K. Behera, long after he had relinquished his charge on October 28, 2025. The debit notes used for these transfers also appeared to be forged and lacked official memo or dispatch numbers. In one glaring instance, the committee found a cheque where the amount in figures was written as ₹2.5 crore, but the amount in words was just "Rupees Twenty-Five." Despite this obvious discrepancy, the bank honoured and processed the cheque.

Summary of the IDFC First Bank Fraud Case

Bank's Response and Government Action

In response to the crisis, IDFC First Bank acted swiftly to contain the financial damage. The bank announced it had repaid the full principal and interest, amounting to ₹583 crore, to the affected government departments. It also suspended four officials and appointed KPMG, a third-party firm, to conduct a thorough forensic audit. Meanwhile, the Haryana government took decisive action by de-empanelling both IDFC First Bank and AU Small Finance Bank from participating in any government business, effective February 18, 2026.

Legal Proceedings and Ongoing Investigation

The anti-corruption bureau has registered a First Information Report (FIR) in Panchkula. The case invokes serious charges under the Prevention of Corruption Act and several sections of the Bharatiya Nyaya Sanhita (BNS), including criminal breach of trust by a banker, cheating, forgery, and criminal conspiracy. A Special Investigation Team (SIT), headed by senior IPS officer Ganga Ram Punia, has been formed to ensure a comprehensive probe. Bureau chief Arshinder Singh Chawla stated that tracking the complete money trail is a complex process and the investigation will widen to scrutinize all suspected fraudulent transactions.

Conclusion: A Continuing Investigation

The arrest of the four main accused marks a significant development in the ₹590 crore IDFC First Bank fraud case. While the bank has compensated the government for the financial loss, the investigation by the SIT is far from over. The focus now shifts to uncovering the entire money trail, identifying any other individuals involved, and ensuring that all responsible parties are brought to justice. The case serves as a stark reminder of the vulnerabilities that can exist within banking systems, even through non-digital means, and the critical importance of robust internal controls.