₹590-Crore Scam Unearthed Involving Fake Firms Linked to IDFC First Bank

In a significant development regarding the Rs 590-crore scam involving IDFC First Bank, early investigations have disclosed that the main suspects created numerous counterfeit firms to illicitly reroute government funds into various accounts. Police officials announced these findings at a press conference held on Thursday, highlighting the extent of the fraud.

Investigators have traced the operation to 12 bank accounts associated with eight government departments that have allegedly been exploited in the scheme. Among these accounts, 10 were affiliated with a branch of IDFC First Bank located in Chandigarh, and the remaining two accounts were linked to AU Small Finance Bank.

The inquiry has revealed that the individuals orchestrating the scam utilized forged debit memos and authorized unauthorized fund transfers to facilitate the misappropriation. Additionally, fabricated bank statements were utilized to enable the diversion of funds to accounts associated with the accused and their affiliates.

As part of their ongoing investigation, the authorities are meticulously reviewing financial records from the past year to monitor the complete trail of the diverted funds. Thus far, 11 individuals have been detained, including six employees from the bank, one government official, and four other participants in the scheme. Currently, ten of these individuals are in judicial custody, while one is being held on police remand.

The investigation team has executed operations at 16 different locations, leading to the recovery of various documents related to real estate purchases that are suspected to have been acquired with proceeds from the illicit activities. More than 25 electronic devices, which include mobile phones and laptops, have been confiscated and sent for forensic analysis.

Additionally, law enforcement officials have seized six high-end vehicles—three Toyota Fortuners, two Innovas, and a Mercedes—believed to have been procured with the misappropriated funds. The investigators have also identified ten properties that are thought to be linked to the diverted capital.

An FIR was registered in this case on February 23, 2026, against unidentified officials connected to IDFC First Bank and AU Small Finance Bank. The charges were filed under the provisions of the Prevention of Corruption Act, 1988 (as amended in 2018), alongside relevant sections of the Bharatiya Nyaya Sanhita, 2023.

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