Gurugram: Haryana’s Vigilance and Anti-Corruption Bureau chief Arshinder Singh Chawla Wednesday disclosed that funds belonging to departments under the Chandigarh Administration are also tangled in the Rs 590-crore fraud at IDFC First Bank’s Chandigarh branch, though the quantum is smaller than what Haryana government departments lost.
Chawla, speaking to The Print, clarified that while the bulk of the siphoned money came from Haryana government department accounts, “some funds of the Chandigarh administration are involved, but not as high as Haryana’s”.
However, Rajiv Tiwari, director of public relations for the Chandigarh Administration, said no mismatch has been reported in any department’s accounts so far. “Chief Secretary H. Rajesh Prasad and Finance Secretary Diprava Lakra today called a meeting of all department heads. No department has reported any discrepancy so far. However, they have instructed everyone to once again scrutinise their accounts closely,” Tiwari told The Print.
DGP Chawla’s revelation adds another layer to the scandal that erupted earlier this week when IDFC First Bank disclosed suspected fraudulent transactions of about Rs 590 crore in a cluster of Haryana government-linked accounts at its Sector 32 branch in Chandigarh.
The bank has since repaid the full principal and interest, amounting to Rs 578 crore, to the affected Haryana government departments.
Chawla was blunt about the bank’s response timeline. He said the mismatch first came to light in January this year, yet the bank took no decisive step until it learnt that the Director General of the Development and Panchayats Department had set up an internal panel to probe the matter and an FIR was imminent.
“The bank tried to become a complainant and approached police in Mumbai as well as Chandigarh to lodge an FIR,” Chawla said. “We approached the Mumbai Police as well as Chandigarh Police and requested them not to oblige them because Haryana was in the process of lodging the FIR, as the fraud had been committed here.”
The bank, in its statement published in newspapers Wednesday, defended its actions. “Now was the occasion to stand up and deliver when it truly matters and put our CUSTOMER FIRST principles in action…We did not hold up the payment on account of the matter being under investigation. This is the DNA of IDFC FIRST Bank,” it said, adding that it had paid out 100 percent of the principal and interest even as the probe continues.
The Haryana government departments, the bank claimed, appreciated the “positive approach, professional manner, and speedy and principle-based resolution”.
The bank mentioned the amount paid as Rs 583 crore, though CM Nayab Saini had told the Haryana Assembly Tuesday that the bank paid Rs 578 crore, which included Rs 556 crore principal amount and Rs 22 crore interest.
Arrests and modus operandi
The Vigilance Bureau acted swiftly after receiving a directive from the Chief Secretary’s vigilance wing on 23 February, based on an inquiry by the Development and Panchayats Department. An SIT led by SP Ganga Ram Punia was formed, and four persons were arrested late Tuesday night. They include Ribhav Rishi, former manager of the Sector 32 branch from where the funds were allegedly siphoned, and Abhay Kumar, who worked as relationship manager at the branch. Both had left the bank about six months ago.
The other two are Swati Singla and her brother Abhishek Singla. Nearly Rs 300 crore was routed to a company called Swastik Desh Projects, in which Swati holds 75 percent shares and Abhishek the remaining 25 percent. Swati is Abhay’s wife.
The ACB, said DGP Chawla, issued a lookout notice for Ribhav and Abhay, acting on the suspicion that they could leave the country. He said some accounts have also been frozen but it would be inappropriate to reveal the names of the organisations at this point.
DGP Chawla described Ribhav and Abhay as the “main accused”. Funds were transferred using forged instruments and internal mechanisms, then parked in shell entities before being routed, including to an AU Small Finance Bank branch in Mohali, he said.
He pointed to the tri-city geography complicating oversight: “IDFC branch is in Chandigarh, Haryana departments are in state territory, and AU Small Finance has its branch in Mohali.”
When questioned, senior bank management cited “proximity of the three cities, and two states and one Union Territory” as the reason accounts were opened across boundaries.
Questions on oversight
Chawla said the SIT is also probing whether Haryana government officials played any role. “Prima facie some mix of officials seems evident but it would be too early to say anything with confirmation,” he added.
The bureau is roping in chartered accountants to assist the “cumbersome investigation”.
“We assure you we will take strict action against everyone who is involved. The investigation is in a preliminary stage now. The modus operandi has come before us, but we cannot share details without cross-verification,” DGP Chawla said.
The Haryana government has already de-empanelled IDFC First Bank and AU Small Finance Bank, barred government departments from opening accounts in private banks without the Finance Department’s nod, and ordered closure of existing accounts in these banks.
(Edited by Amrtansh Arora)