Haryana ACB books officials of two banks in ₹590-crore govt fund scam

Case registered under Prevention of Corruption Act against IDFC First and AU Small Bank officials for suspected fraud and favouritism in managing state deposits.

The Haryana Anti-Corruption Bureau (ACB) has registered a case against employees of IDFC First Bank and AU Small Finance Bank, alongside unidentified public servants, to probe suspected fraudulent transactions worth ₹590 crore involving government department accounts.

Chief minister Nayab Singh Saini told the Haryana assembly on Tuesday that the entire amount had been deposited back in the state government’s accounts. (File photo)

Director General, ACB, AS Chawla said that the FIR was lodged at the ACB’s Panchkula police station following a February 23 communication from Haryana chief secretary Anurag Rastogi. The case invokes Section 13(2) of the Prevention of Corruption (PC) Act, which targets criminal misconduct by public servants.

The ACB has also applied several provisions of the Bharatiya Nyaya Sanhita (BNS), including Section 316(5): Criminal breach of trust by a banker or agent; Section 318(4): Cheating; Sections 336(3), 338, and 340(2): Forgery and using forged documents; and Section 61(2): Criminal conspiracy.

Bank officials can be probed under PC Act

The Supreme Court had in 2016 ruled that officials of a bank are public servants for the purpose of prosecution under the Prevention of Corruption Act.

Justice Ranjan Gogoi while concurring with the conclusions arrived by fellow judge, Prafulla C Pant said the accused respondents (bank officials) are public servants for the purpose of the Prevention of Corruption Act by virtue of the provisions of Section 46 A of the Banking Regulation Act and the prosecutions launched against the accused respondents were maintainable in law.

High-level panel to probe lapses; funds recovered: CMChief minister Nayab Singh Saini said that the state government will constitute a high-level committee to probe the lapses and fix responsibility.

Saini told the assembly on Tuesday that the entire amount had been deposited back in the state government’s accounts. “The full amount has been recovered,” he said.

Detecting deviations in the operation of bank accounts and management of fixed deposits, the Haryana finance department in a 2025 compliance directive, had asked departments and public sector enterprises (PSEs) to conduct an internal audit of their bank accounts and fixed deposits.

The finance department had raised concerns over discretionary handling of bank accounts and fixed deposits stating it can weaken transparency and institutional control over public funds.

Citing violations of guidelines regarding the operation of bank accounts and management of fixed deposits, the finance department said key deviations included opening accounts without adhering to prescribed proximity norms, selection of banks and branches based on personal preferences, and indications of favouritism in the placement of fixed deposits.

The finance department specifically took note of several Haryana government establishments in Panchkula opening bank accounts in Chandigarh without valid justification, terming the practice contrary to instructions. It said such actions compromise financial discipline, transparency and fairness in the management of public funds. The departments and PSEs have been asked to examine whether accounts have been opened in accordance with guidelines and if necessary approvals were obtained and whether any corrective action was needed.