In a relatively quick move in a series of major banking scandals of recent times, Haryana State Vigilance and Anti-Corruption Bureau (ACB) has arrested four people after they committed a total of ₹590 crore scam at an IDFC First Bank, Chandigarh branch. The breakthrough comes on an unusually successful financial recovery period, with IDFC First Bank returning the full amount scammed back to the state government for reimbursement within 24 hours.
The breakthrough: Four arrests
The ACB verified the arrests on the evening of February 24, 2026. The group consists of some former bank staff and independent individuals believed to have conspired to defraud the government money.
The arrested persons are:
- Ribhav Rishi: The suspected mastermind and previous manager of the Sector 32, Chandigarh branch.
- Abhay Kumar: A former relationship manager at the bank who resigned in August 2025.
- Swati Singla: Owner of "Swastik Desh Projects," wife of Abhay Kumar.
- Abhishek Singla: Partner in "Swastik Desh Projects," brother of Swati.
Investigations found that the group used forged cheques with specific targets. They also moved out to shell companies–this time specifically dealing with accounts belonging to Mukhya Mantri Gramin Awas Yojana-2.0.
Record Recovery of Funds
As part of the corporate government’s efforts to put some semblance of control over its own finances back in place, IDFC First Bank immediately paid back the various departments involved in the Haryana state. Upon the dispute being confirmed, the State Assembly of Haryana, led by Haryana Chief Minister Nayab Singh Saini, was told that, on the day of the controversy getting confirmed, ₹583 crore (of which ₹556 crore principal and approximately ₹27 crore in interest) had been credited back into government accounts. “The funds are the hard-earned cash of 2.8 crore residents of Haryana. Each rupee has been protected and repatriated," CM Saini said in the Budget session.
Methodology: Forged Cheques And Internal Collusion
The fraud was committed on-site in the Chandigarh branch using a traditional brand fraud with the use of physical instruments. Employees reportedly circumvented the “maker-checker” system a conventional banking security protocol to authorize transfers via forged signatures.
The discrepancy had been flagged when the Haryana government found that instructions to channel excess money into fixed deposits were overlooked. Departments began closing accounts after the transfer of funds to a nationalized bank when they became aware of their missing balances.
| Key Fact | Details |
| Total Fraud Amount | ₹590 Crore |
| Amount Recovered | ₹583 Crore (Principal + Interest) |
| Primary Suspect | Ribhav Rishi (Ex-Branch Manager) |
| Investigation Agency | Haryana State Vigilance & Anti-Corruption Bureau (ACB) |
| Banking Impact | Isolated to one branch; no systemic risk identified by RBI. |
Market and Administrative Fallout
The fraud was revealed and the stock market reacted rapidly with IDFC First Bank shares dropping down to a lower circuit, causing billions in investor wealth to be wiped out. The Haryana government has since de-empanelled IDFC First Bank and AU Small Finance Bank (the latter after it was accused of indirect support for the diversion of funds) from managing business conducted by the state government, following the incident. At the top of the food chain is the committee chaired by the Finance Secretary that is investigating the issue to strengthen accountability for public servants and bank officials.
