Fake Firms, Forged Documents: How ₹590-Cr IDFC First Bank Scam Was Pulled Off

Investigators probing the ₹590-crore IDFC First Bank fraud have uncovered a carefully crafted web of shell companies and doctored banking records used to siphon government funds.

Nearly 100 bank accounts have been frozen across multiple banks on suspicion of being used to misappropriate public money, the Haryana State Vigilance & Anti-Corruption Bureau (SV&ACB) said on Thursday, as reported by The Indian Express.

How Money Was Moved

Addressing a press conference at the state vigilance headquarters, ADGP Charu Bali, as quoted by The Indian Express, said the prime accused, Ribhav Rishi, set up multiple fictitious firms to illegally channel government funds into private accounts.

Some of the fake entities identified during the probe include RS Traders, Cap Co Fintech Services, SRR Planning Gurus, and Swastik Desh Project.

The fraud involved 12 bank accounts linked to eight government departments, 10 at IDFC First Bank's Sector-32 Chandigarh branch and two at AU Small Finance Bank.

Bali said the accused manipulated banking records by creating fake debit memos or moving funds without any valid authorisation. Forged bank statements were also prepared to route money into accounts linked to the accused and their relatives.

An FIR was registered on February 23, 2026, at the SV&ACB Police Station in Panchkula under the Prevention of Corruption Act, 1988, and relevant sections of the Bharatiya Nyaya Sanhita, 2023.

Point to note: The fraud first came to light in February 2026 when IDFC First Bank noticed discrepancies while processing an account closure request by a Haryana government department. The bank subsequently suspended four employees and appointed KPMG to conduct a forensic audit.

Arrests, Raids and Recoveries

So far, 11 people have been arrested, six bank employees, four private individuals, and one government official. Ten are in judicial custody and one is on police remand. Investigators have conducted raids at 16 locations, recovered key property-related documents, and seized more than 25 electronic devices including mobile phones and laptops, which have been sent to a Cyber Forensic Laboratory.

Authorities have also seized six luxury vehicles, three Toyota Fortuners, two Innovas, and one Mercedes, believed to have been bought using stolen funds. Ten properties have additionally been identified as suspected to have been purchased from the proceeds of the crime.

A detailed review of financial records from the past one year across eight government departments is currently underway and nearing completion. Bali reportedly said further action will follow once the involvement of additional government employees and private individuals is confirmed.