In a major breakthrough in the ₹590-crore embezzlement case linked to IDFC First Bank, the alleged mastermind Ribhav Rishi and three others — Abhishek Singla, Abhay Kumar and Swati Singla — have been arrested by the Anti-Corruption Bureau (ACB). The arrests mark a significant step forward in a case that has sent shockwaves through Haryana’s administrative and banking circles.
On Tuesday night, all four accused were taken to Sector 6 Hospital in Panchkula for medical examination following their arrest. The ACB is currently interrogating them to unravel the alleged large-scale diversion of public funds.
Credits: Outlook Money
How the Fraud Came to Light
The controversy erupted after the Haryana government detected discrepancies in two accounts opened on September 26, 2025, under the MMGAY-2.0 scheme at IDFC First Bank and AU Small Finance Bank.
As per the FIR, an initial ₹50 crore was transferred to IDFC First Bank and ₹25 crore to AU Small Finance Bank, in accordance with fund limits prescribed by the Finance Department’s July 12, 2024 instructions. Crucially, no approvals for fund utilisation were issued at any stage, and the entire amounts were meant to remain untouched in the accounts.
However, when the government sought closure of these accounts in January 2026 and directed both banks to transfer the full principal amounts along with accrued interest to Axis Bank, startling discrepancies emerged.
The Missing Crores
AU Small Finance Bank transferred ₹25.45 crore (including interest) to Axis Bank and closed the account on January 16, 2026. In contrast, IDFC First Bank transferred only ₹1.27 crore before closing the account — despite explicit instructions to transfer the full ₹50 crore plus interest.
This glaring shortfall triggered alarm within the department. The government formally recorded its disagreement with the account status and sought detailed documentation from IDFC First Bank, including account-opening forms, transaction logs, and voucher details.
The bank submitted documents on February 16, 2026. Senior officials who attended the inquiry committee proceedings that day were directed to submit written statements after internal vetting. However, according to the FIR, no such statements have been submitted to date.
Forged Signatures and Procedural Red Flags
The FIR outlines a series of troubling irregularities uncovered during the inquiry. Multiple cheques and debit notes were processed by the bank, allegedly bearing forged signatures of D.K. Behera, the then Director General (Developments and Panchayats), who had relinquished charge on October 28, 2025.
Investigators also noted that several debit notes lacked memo or dispatch numbers — a serious procedural lapse. In one particularly alarming instance, a cheque mentioned the amount as ₹2.50 crore in figures but stated “Rupees twenty five” in words. Despite this glaring mismatch, the cheque was honoured and processed.
The committee reviewing the case concluded unanimously that no fund transfer instructions had been issued by the department against these accounts. According to official records, debit notes were used only for transactions approved by competent authorities — and no such approvals existed in this case.
Legal Action and Charges
An FIR has been lodged under Section 13(2) of the Prevention of Corruption Act and multiple provisions of the Bharatiya Nyaya Sanhita, including criminal breach of trust, cheating, forgery, use of forged documents, and criminal conspiracy.
The ACB is now tracing the money trail and examining digital records to establish the precise modus operandi and timeline of the alleged fraud. Investigators are also probing whether additional individuals or entities were involved.
Government Cracks Down
Haryana Chief Minister Nayab Singh Saini informed the state Assembly that no one involved — whether a bank employee, private individual, or government official — would be spared.
On February 18, the Haryana government officially de-empanelled IDFC First Bank and AU Small Finance Bank from participating in government business with immediate effect. An official circular stated that no government funds would be deposited, invested, or transacted through these banks until further notice.
Credits: Mint
What Lies Ahead
The arrests of the alleged mastermind and three associates signal that the investigation is gathering pace. Yet key questions remain: How did such large sums allegedly move without detection? Were internal banking controls bypassed — or compromised?
As the ACB intensifies its probe, the case is poised to become one of the most closely watched financial fraud investigations in the state. With public funds at stake and allegations of forged signatures and procedural lapses, the outcome could have far-reaching implications for banking oversight and government financial safeguards in Haryana.
