Chandigarh, Feb 24 (IANS) Haryana Chief Minister Nayab Singh Saini on Tuesday informed the Assembly that the entire money in the fraud involving state government accounts at the Chandigarh branch of IDFC First Bank has been returned to the government's accounts. 

“A total of Rs 556 crore, including Rs 22 crore of interest, was returned to the government account within 24 hours,” he said.

The Chief Minister said the involvement of four-five employees of the bank’s Chandigarh branch has been revealed.

“No one, whether a bank employee, a private individual, or a government official, will be spared in the case,” he said.

Saying the country has a strong watchman like Prime Minister Narendra Modi, the Chief Minister assured the House, “No one can even look at the hard-earned money of 2.8 crore people (of the state). Today, the governance system in Haryana has changed, and every penny of the public's money is accounted for.”

He said the government has formed a committee headed by the Finance Secretary to investigate this matter. “This committee will not only investigate the entire matter but also make recommendations to prevent such incidents from recurring in the future,” he added.

Earlier, IDFC First Bank identified Rs 590 crore of fraudulent activities at its Chandigarh branch, according to the bank’s Exchange Filing.

The state Vigilance and Anti-Corruption Bureau has registered an FIR against bank officials, public servants and other individuals under Section 13 (2) of the Prevention of Corruption Act and Sections 316 (5), 318 (4), 336 (3), 338, 340 (2) and 61 (2) of the Bharatiya Nyaya Sanhita (BNS).

In a protest outside the Assembly by the opposition Congress on the bank scam, state party President Rao Narendra Singh told the media, “This is not an ordinary scam, it is more than a Rs 590-crore scam, and I demand a CBI investigation into it, as big players are involved.”

A day earlier, CM Saini had informed the House that the fraud came to light due to the alertness of state government departments, following which the government immediately de-empanelled the bank.

Statements provided by the bank did not match the records maintained by the departments concerned, and directions have also been issued to constitute a high-level committee to conduct a detailed probe, he had said.

The Chief Minister had informed the House during the Budget Session of the Vidhan Sabha that IDFC First Bank had written to SEBI acknowledging irregularities committed by certain bank employees.

The bank has also initiated action against the employees concerned.

He had said the bank wrote a letter on February 21. However, even before the government took cognisance of the matter, on February 18, it de-panelled the bank and directed that the entire amount, along with interest, be transferred to a nationalised bank.

The Chief Minister had said a significant portion of the government’s funds deposited with IDFC First Bank had been invested in fixed deposits (FDs). He had said the practice of departments keeping funds in banks is not new. This has been happening earlier as well. Even during the Congress tenure, departmental funds were kept in banks. Banks are empanelled from time to time, and new banks continue to be added, he had said.

--IANS