The latest in the IDFC First Bank alleged fraud- Haryana Chief Minister Nayab Singh Saini, in an address to the Haryana State Assembly, said that the entire Rs 583 crore has been recovered within 24 hours. IDFC First Bank also confirmed, through the regulatory filing, that it has paid the entire principal and interest amount to the concerned departments of the Haryana government.
“…I want to clarify before this House that the entire amount lost in yesterday’s incident, including the funds of some Haryana government departments and boards and corporations, has been deposited back into our accounts within just 24 hours,” the Haryana Chief Minister confirmed.
The Chief Minister said IDFC First Bank deposited around Rs 556 crore, while the remaining amount included interest earned during the period of approximately Rs 22 crore.
IDFC First Bank makes full Rs 583 crore payout as probe continues
IDFC First Bank said that it chose not to withhold payment despite the matter being under investigation.
“Even though the investigation in the matter is ongoing, we have paid out 100% of the principal and interest to the relevant departments of Haryana Government as claimed, which works out to a net amount of Rs 583 crore.”
The lender said it will continue to work closely with the Haryana government departments and law enforcement agencies to pursue action against those responsible for the fraud and recover its dues.
Haryana CM flags role of bank employees in alleged fraud
On Sunday, the bank disclosed a Rs 590-crore fraud committed by its employees and others in accounts held by the Haryana government.
According to the Haryana Chief Minister, preliminary findings suggest that a small group of bank employees were involved in the operation.
“Four or five middle and lower-level employees of a bank branch in Chandigarh colluded to carry out this operation,” Saini told the House.
Strict action promised, high-level panel to be formed
He said the Haryana government in corporation with the bank, will ensure that no one found guilty in the matter will be spared be it a bank employee, private individual or even a government employee.
On Monday, Saini said the state’s Anti-Corruption Bureau would conduct an in-depth probe into the fraud. “We have formed a committee headed by the Finance Secretary in this entire matter,” Saini said on Monday.
The chief minister also announced the formation of a high-level committee to probe the matter in detail.
RBI says no systemic issue
IDFC First Bank assured the investors and customers that the fraud is limited to a single location of its Chandigarh branch and it is unlikely to have a major impact on profits.
The RBI Governor Sanjay Malhotra also said that there is no systemic issue around the Rs 590 crore fraud and it watching the development at IDFC First Bank.