Chandigarh, Feb 24: The Haryana Anti-Corruption Bureau (ACB) has filed a formal case against employees of IDFC First Bank and AU Small Finance Bank, as well as unidentified public servants, in connection with suspected fraudulent activities involving ₹590 crore in government funds. The First Information Report (FIR) was lodged at the Panchkula ACB police station following a directive from Haryana Chief Secretary Anurag Rastogi on February 23.
Director General of the ACB, AS Chawla, stated that the investigation focuses on criminal misconduct, cheating, and forgery. The case invokes Section 13(2) of the Prevention of Corruption (PC) Act, alongside various provisions of the Bharatiya Nyaya Sanhita (BNS) related to criminal breach of trust by bankers and criminal conspiracy. Authorities affirmed that bank officials are subject to the PC Act based on a 2016 Supreme Court ruling that classifies them as public servants for prosecution purposes.
Chief Minister Nayab Singh Saini informed the State Assembly on Tuesday that a high-level committee will be established to investigate administrative lapses and fix responsibility. He maintained that the state has successfully secured the return of the compromised funds. “The full amount has been recovered,” the Chief Minister declared, confirming that the principal and interest have been restored to government accounts.
The investigation follows a 2025 compliance directive from the Haryana Finance Department, which expressed concern over the discretionary management of fixed deposits and bank accounts. The department noted several deviations from established protocols, including the opening of accounts in Chandigarh by Panchkula-based establishments without proper justification. Officials asserted that such practices indicate favoritism and weaken institutional control over public money.
The Finance Department further stated that internal audits have been mandated for all departments and public sector enterprises to ensure adherence to proximity norms and transparency guidelines. The state government affirmed that it is examining whether necessary approvals were obtained for these accounts and will take corrective action where financial discipline was compromised.
