A huge scam related to government funds has come to light in Haryana, in which an embezzlement of about Rs 590 crore has been found. This case pertains to the Chandigarh branch of IDFC First Bank, where this fraud was committed with the connivance of government employees and some officials of the bank. After this incident, Haryana Government has taken strict action and removed IDFC First Bank and AU Small Finance Bank from its list.
What is the whole matter and how was it revealed?
The scam came to light when a government department applied to close its account and transfer the money to another bank. When the bank balance was checked, a huge difference was found between the government records and the amount present in the bank. Investigation revealed that some officials of the bank had diverted money by ignoring the rules.
Taking immediate action, the bank has suspended four of its officers. The bank says that they have informed the police and regulatory bodies about this. Apart from this, the process of freezing (lien-marking) suspect accounts for recovery has also been initiated.
What new rules has the government made for banks?
After this incident, Haryana Finance Department has issued new instructions for all government departments. Now the strictness on keeping government money in private banks has been increased.
IDFC First Bank and AU Small Finance Bank have been immediately removed from government business. All departments will now have to open new accounts only in nationalized banks. Now to open an account in private banks, first written approval will have to be taken from the Finance Department. All departments will have to complete reconciliation of their bank accounts by 31 March 2026.
Is the money of common customers safe?
IDFC First Bank has issued a statement assuring that this fraud is limited to only a few government accounts. This will not affect the general customers, retail or corporate customers of the bank at all. The bank has entrusted the work of forensic audit to an external agency to thoroughly investigate the matter.
On the other hand, the Haryana government is also ensuring that the taxpayers’ money is properly accounted for. Now administrative secretaries will be made directly responsible for fund management so that such irregularities do not happen in future.
