Nearly 100 Bank Accounts Frozen in ₹590-Crore IDFC First Bank Fraud; Vigilance Probe Uncovers Network of Fake Firms and Illicit Transfers
Authorities investigating the massive ₹590-crore financial fraud linked to IDFC First Bank have so far directed banks to block close to 100 accounts suspected to have been used for siphoning off government money.
The development was disclosed on Thursday by the Haryana State Vigilance and Anti-Corruption Bureau (SV&ACB), which is spearheading the investigation into the alleged embezzlement of public funds.
During a media briefing held at the vigilance headquarters, Additional Director General of Police Charu Bali said investigators believe the accounts were part of a network used to divert money belonging to multiple government departments.
Fake Companies Used to Divert Government Funds
According to Bali, the main suspect in the case, Ribhav Rishi, allegedly established numerous shell companies and bogus business entities to illegally channel public funds into different bank accounts under his control.
Preliminary findings suggest that funds belonging to several government offices were transferred without authorization into accounts registered in the names of these fictitious firms.
Providing further details about the companies allegedly used to route the funds, Bali said investigators had identified entities such as R S Traders, Cap Co Fintech Services, SRR Planning Gurus Pvt. Ltd., and Swastik Desh Project, among others.
FIR Registered Against Bank Officials
Sharing updates on the probe, the ADGP said a criminal case was registered on February 23, 2026, at the SV&ACB police station in Panchkula against unidentified officials from IDFC First Bank and AU Small Finance Bank.
The charges were filed under provisions of the Prevention of Corruption Act 1988 (amended in 2018) as well as relevant sections of the Bharatiya Nyaya Sanhita 2023.
Initial investigations have revealed that 12 bank accounts connected to eight different government departments were involved in the alleged fraud. Of these, 10 accounts were maintained at the Sector-32 branch of IDFC First Bank in Chandigarh, while two were held at AU Small Finance Bank.
Eleven Arrested So Far
So far, authorities have detained 11 individuals in connection with the case. The arrested group includes six bank staff members, four private individuals, and one government employee.
According to Bali, 10 of the accused have been sent to judicial custody, while one suspect remains under police interrogation on remand.
The investigation team has also conducted extensive search operations at 16 different locations, collecting surveillance footage and other evidence during the raids.
During these searches, investigators recovered documents linked to several property purchases suspected to have been funded with illegal proceeds, providing additional leads in the ongoing probe.
Electronic Devices and Luxury Cars Seized
Officials said the investigative team has confiscated more than 25 electronic gadgets, including mobile phones and laptop computers. These devices have been sent to a Cyber Forensic Laboratory for detailed digital analysis.
Authorities have also taken possession of six high-end vehicles, believed to have been bought using money obtained through fraudulent transactions. These vehicles include three Toyota Fortuners, two Toyota Innovas, and one Mercedes-Benz car.
Investigators have identified irregular financial activity involving eight government departments, and a thorough examination of financial records from the past year is currently underway and nearing completion.
Bali further said that the probe has revealed possible involvement of several government employees and private individuals, and appropriate action will be taken once their roles are conclusively established.
Additionally, authorities have identified 10 immovable properties that are suspected to have been acquired using the illegally diverted funds.
Fraudulent Banking Records Manipulated
Explaining the method used by the accused, the ADGP said investigators discovered that banking records were manipulated to enable the illegal transfers.
The accused allegedly created fake debit memos or transferred funds without legitimate debit memos or authorised cheque instructions.
In several instances, fabricated bank statements were also prepared to facilitate the transfer of money into multiple accounts linked directly or indirectly to the suspects and their relatives.
Investigators have obtained a large volume of records from the banks involved and from government departments.
These documents are currently being carefully examined to distinguish legitimate transactions from unauthorised transfers and to track the complete movement of the funds.
Multi-Agency Investigation Underway
The Vigilance Bureau said it is sharing relevant details with other investigative bodies whenever required, and the probe is being conducted through close coordination among multiple government agencies.
Superintendent of Police Ganga Ram Punia, who was also present at the press conference, told reporters that questioning of the arrested suspects is continuing and the investigation is relying on advanced technical and scientific techniques.
He added that the inquiry is still ongoing and that more significant disclosures are expected in the coming days.
Enforcement Directorate Conducts Parallel Probe
Meanwhile, the Enforcement Directorate has also launched a parallel investigation into the alleged fraud. On Wednesday, the agency carried out search operations at 19 locations across Chandigarh, Haryana, and Punjab as part of its own probe into the money-laundering aspects of the case.
Authorities believe the investigation could uncover further details about the complex network used to divert public funds, making it one of the most significant financial fraud cases currently under investigation in the region.
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