Investigators are probing 391 suspect transactions across 170+ accounts. IDFC First Bank has suspended staff and ordered a forensic audit.
The Chandigarh branch of IDFC First Bank is at the centre of the alleged Rs 590-crore fraud involving Haryana government accounts. | IANS
A Haryana government department’s request to shut its bank account has spiralled into a Rs 590 crore controversy around IDFC First Bank. Haryana Chief Minister Nayab Singh Saini on Tuesday claimed in the House that the money has been recovered within 24 hours, including interest.
The incident matters because it moved fast: from a basic “this is our balance” mismatch to a probe spanning hundreds of transactions and multiple accounts, shaking investor confidence and putting internal controls and handling of public funds under the spotlight.
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A closure request sets the ball rolling
Motilal Oswal Financial Services Ltd, in a post on X, said the trigger was simple: one Haryana government department asked IDFC First Bank to close its account.
A balance mismatch is spotted
The department reportedly told the bank: “This is our balance.” The bank’s system reportedly replied: “No, it isn’t.” That single mismatch triggered internal checks, the post said.
More departments report similar mismatches
After the first discrepancy, the post said more Haryana departments came forward with more mismatches, and the pattern looked similar.
Same branch, same pattern
As per the Motilal Oswal post, the discrepancies were concentrated at the same branch, and the repetition turned the red flag into what the post called a “siren”.
Investigators flag unauthorised employee activity
Motilal Oswal said investigators found:
Rs 590 crore put “under reconciliation”
The post said the total amount under reconciliation was Rs 590 crore.
Probe widens to transactions and accounts
Motilal Oswal said investigators are probing:
It also said Rs 70 crore had already been frozen.
Wider scrutiny claimed in the post
The thread claimed that four senior IAS officers are under scrutiny, suggesting the issue had moved beyond a narrow “branch misconduct” frame.
Bank triggers internal and external action
Motilal Oswal said the bank’s response included:
Market reacts, stock slides
Motilal Oswal said IDFC First Bank stock plunged nearly 20 per cent in a day, with investor concern centred on governance credibility and internal controls.
The bigger risk isn’t capital.
It’s reputation.This bank has positioned itself for years as:
Disciplined & Public firstNow it faces:
Temporary suspension of Haryana govt dealings and regulatory scrutiny.— Motilal Oswal Financial Services Ltd (@MotilalOswalLtd) February 24, 2026
In Chandigarh, Haryana CM Nayab Singh Saini told the House that the amount linked to the incident has been deposited back into government accounts within 24 hours.
“…I want to clarify before this House that the entire amount lost in the yesterday’s incident, including the funds of some Haryana government departments and boards and corporations, has been deposited back into our accounts within just 24 hours,” he said.
Saini said approximately Rs 556 crore was deposited by the bank, and that interest of about Rs 22 crore was also received and returned. “The interest has also been returned,” he said, adding, “We have deposited that amount and recovered all of that money within just 24 hours.”
He also alleged that four or five middle and lower-level employees of a bank branch in Chandigarh colluded to carry out the operation, and said strict action would be taken against any government official or employee found involved.
Saini announced that the government would form a high-level committee to fix accountability and suggest measures to prevent similar incidents.
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