A major financial fraud involving ₹590 crore has come to light during an investigation linked to IDFC First Bank, where authorities uncovered a complex network of fake companies and manipulated banking transactions used to siphon off government funds.
According to officials from the Haryana State Vigilance and Anti-Corruption Bureau (SV&ACB), the main accused allegedly diverted government money into multiple accounts using forged debit memos, fabricated bank statements, and unauthorised fund transfers from several departmental accounts.
Police have so far arrested 11 people in connection with the case, including six bank employees, four private individuals, and one government employee. Ten of the accused are currently in judicial custody, while one remains on police remand as the investigation continues.
Authorities said the fraud was carried out by routing funds through several fake companies. Among the entities identified during the investigation are RS Traders, Cap Co Fintech Services, SRR Planning Gurus Pvt. Ltd., and Swastik Desh Project.
Officials revealed that the accused allegedly transferred money from government department accounts into these companies without proper authorisation.
Additional Director General of Police Charu Bali from the SV&ACB said that a case was registered on February 23 at the bureau’s police station in Panchkula against unknown officials of IDFC First Bank and AU Small Finance Bank under relevant legal provisions.
Investigators have identified the involvement of 12 bank accounts belonging to eight government departments. Of these, 10 accounts were maintained at an IDFC First Bank branch in Chandigarh’s Sector 32, while two accounts were held at AU Small Finance Bank.
During the investigation, authorities conducted raids at 16 locations and collected important evidence, including video footage from some premises.
Officials also recovered several documents related to property purchases and seized more than 25 electronic devices, including mobile phones and laptops. These devices are now being examined by cyber forensic experts to trace digital evidence and financial transactions.
As part of the probe, investigators have frozen debit operations in more than 100 bank accounts suspected to be linked to the fraud.
Authorities have also seized several high-value assets believed to have been purchased using proceeds from the crime. These include six vehicles — three Toyota Fortuners, two Toyota Innovas, and one Mercedes car — along with movable and immovable properties.
So far, investigators have identified at least 10 properties that are suspected to have been acquired through illegally diverted funds.
The probe has also revealed that funds were transferred by creating fake debit memos in bank records or by bypassing legitimate documentation such as cheques. Investigators also discovered that fake bank statements were prepared to facilitate transfers to accounts linked directly or indirectly to the accused and their family members.
Officials said a large volume of financial records obtained from banks and government departments is currently being analysed to track the full flow of funds and identify both authorised and unauthorised transactions.
Authorities have also indicated that several government officials and private individuals may have been involved in the fraud. Further action will be taken once their roles are confirmed.
The SV&ACB stated that the investigation is ongoing and additional revelations are likely as more financial records and digital evidence are examined. At present, officials have not confirmed the involvement of any senior government officials in the case.
