IDFC FIRST Bank has stated that it has paid 100% of the relevant financial obligations in connection with the Rs. 590-crore fraud case. The bank emphasized its cooperation with regulators and law enforcement agencies.
The bank has said that it has repaid 100 per cent of the principal amount claimed by Haryana government departments. In a statement, the bank has said it always upholds the highest principles and standards. "We call ourselves a customer-first bank in the way we define our product policies, disclosures, and no fine print banking. We give benefit of doubt to customers in event of difference of opinion.
“Now was the occasion to stand up and deliver when it truly matters and put our CUSTOMER FIRST principles in action. We are a principle-based bank, and mean it. We did not hold up the payment on account of the matter being under investigation. This is the DNA of IDFC FIRST Bank," the bank said in its statement.
"Hence, even though the investigation in the matter is ongoing, we have paid out 100% of the principal and interest to the relevant departments of Haryana Government as claimed, which works out to a net amount of INR 583 crore. The departments have sincerely thanked and appreciated the Bank for the positive approach, professional manner, and speedy and principle-based resolution," the statement said.
"The Bank remains committed to working together with the relevant Haryana Government departments and the law enforcement agencies, to pursue actions against the perpetrators of the fraud and look forward to recovering our dues," it added.
According to the probe, two accounts were opened in September 2025 in IDFC First Bank and AU Small Finance Bank under the Mukhya Mantri Gramin Awas Yojana-2.0 scheme, with Rs 50 crore and Rs 25 crore deposited respectively. The funds were meant to remain untouched until further government approval.
Discrepancies surfaced in January when authorities ordered the closure of the accounts and the transfer of funds with interest to another bank. AU Small Finance Bank transferred Rs 25.45 crore and closed the account, but IDFC First Bank transferred only about Rs 1.27 crore instead of the Rs 50 crore plus interest, triggering suspicion and a deeper investigation that exposed the massive fraud.
Haryana Chief Minister Nayab Singh yesterday told the Assembly that nearly Rs 556 crore, including Rs 22 crore in interest, has been recovered in the IDFC First Bank fraud case within 24 hours.
The Haryana Anti-Corruption Bureau has launched an investigation into the matter and four people have been arrested. The arrested have been identified as Ribhav Rishi, Abhay Kumar, Swati Singla and Abhishek Singla. Two of them are former IDFC First Bank officials, while the others are private individuals running a partnership firm.