Haryana IDFC First Bank is going through a deep controversial crisis. This comes after the alleged illegal siphoning of public money worth Rs 645 crore from government-penned accounts maintained at the bank’s Sector 32 branch in Chandigarh in a scam involving two former bank employees, the police says.
The case has been traced back to February when the fraudsters, Ribhav Rishi and Abhay Kumar had allegedly left the bank and the officials at the bank opened a new account, a routine closure revealed that the official records did not match with the actual balance of the accounts. The shopkeeper’s account in the bank had recovered 3 crore rupees that was allegedly taken from multiple accounts of the Haryana Government.
How did the fraud allegedly start inside the bank?
Investigators say the scam was orchestrated by two former bank officials, Ribhav Rishi and Abhay Kumar, who used their positions to manipulate government deposits. Funds meant to be parked in fixed deposits were allegedly diverted using forged documents and fake debit instructions, while departments were shown falsified fixed deposit receipts to conceal the movement of money.
This money taken away was from different banks maintained by the Haryana government, civic bodies of Chandigarh and private educational establishments. Some of these institutions included Haryana State Pollution Control Board, Panskula Municipal Corporation, Chandigarh Municipal Corporation, Haryana School Shiksha Parijna Parishad etc. All these led to the IDFC First Bank’s accounts.
How were shell firms used in the diversion of money?
A key layer of the alleged fraud involved the creation of shell companies to route illicit funds. Entities such as Capco Fintech Services, RS Trader, and Swastik Desh Projects were reportedly floated in the names of relatives, associates, and proxies linked to the accused. These firms acted as temporary parking points where diverted money was layered before being moved further.
What role did jewellers and cash channels play?
After passing through shell firms, investigators allege that the funds were routed to jewellers and other intermediaries. These entities allegedly helped convert digital transfers into cash or physical assets. Reports suggest that cash was then circulated through brokers and informal channels, making it harder to trace the money trail back to its source.
Based on a large-scale, the fraud is alleged to have been facilitated through huge profits earned by the company’s financials (in the year 2016-17). An alleged layer of the fraud was the circumventing of the normal account opening procedures, and procuring several fake mobile numbers and forgeries of documents.
Large amounts of money were found in the bank accounts of the bank officials’ relatives and close associates (and that over and above the bank’s internal limits). Another alleged layer of the fraud was perhaps the circumvention of the bank’s internal processes, and procurement of several fake mobile numbers and forgeries of documents.
Who are the accused?
The Enforcement Directorate (ED) has arrested the two former bank officials under the Prevention of Money Laundering Act. The Central Bureau of Investigation (CBI) has taken over the probe and is now examining the role of several IAS officers and other officials connected to the departments involved. Search operations have been conducted, and digital evidence has been seized, and multiple transactions have been traced.
With an estimated value of ₹645 crore, the case projects deep concerns over banking oversight, administrative accountability, and the security of public funds. Investigators believe the scam was not a one-time transaction but a structured, multi-layered financial operation involving shell companies, institutional loopholes, and cash conversion networks that operated over an extended period.
