REGULATORY · COMPETITIVE · INDIA
Haryana state funds exposure in IDFC First Bank fraud
Change
Haryana CM Nayab Singh Saini told the State Assembly that nearly ₹556 crore (including ~₹22 crore interest) tied to the IDFC First Bank fraud has been recovered and redeposited into government accounts within 24 hours.
Why it matters
The Haryana government reported that funds linked to its departmental accounts affected by the IDFC First Bank fraud have been returned, totaling nearly ₹556 crore including about ₹22 crore in interest, within 24 hours. This changes the state’s immediate financial position from an active loss event to a recovered-funds posture, narrowing operational disruption risk for impacted departments. The statement also narrows the operational locus to a particular Chandigarh branch and a small group of employees, which can shape the scope of internal reviews, legal proceedings, and counterparty risk assessments. The bank had disclosed the fraud on February 22, 2026; the recovery announcement was made in the Assembly on February 24, 2026.
Implications
- • Near-term liquidity impact on Haryana departments reduced due to rapid fund return
- • Accounting treatment shifts from loss provisioning to reconciliation/interest crediting
- • Incident scope framed as branch-specific, potentially limiting broader counterparty concerns
- • Employee-collusion attribution increases legal/enforcement exposure for involved staff
Who is affected
- • Haryana government departments holding accounts with IDFC First Bank
- • IDFC First Bank (especially the Chandigarh branch operations)
- • State treasury/finance officials responsible for cash management and reconciliation
- • Bank employees implicated in the fraud and related enforcement bodies
Source
Read full article on The Hindu →
Topics
Law & Public Safety Regulatory Actions Compliance Finance & Banking Financial Services