Amid the investigation into the Rs 590-crore fraud at the Chandigarh branch of IDFC FIRST Bank, the bank has said that it has repaid 100 per cent of the principal amount claimed by Haryana government departments.
In a statement published in newspapers today, the bank has said it always upholds the highest principles and standards. "We call ourselves a customer-first bank in the way we define our product policies, disclosures, and no fine print banking. We give benefit of doubt to customers in event of difference of opinion.
Now was the occasion to stand up and deliver when it truly matters and put our CUSTOMER FIRST principles in action. We are a principle-based bank, and mean it. We did not hold up the payment on account of the matter being under investigation. This is the DNA of IDFC FIRST Bank," the bank said in its statement.
"Hence, even though the investigation in the matter is ongoing, we have paid out 100% of the principal and interest to the relevant departments of Haryana Government as claimed, which works out to a net amount of INR 583 crore. The departments have sincerely thanked and appreciated the Bank for the positive approach, professional manner, and speedy and principle-based resolution," the statement said.
"The Bank remains committed to working together with the relevant Haryana Government departments and the law enforcement agencies, to pursue actions against the perpetrators of the fraud and look forward to recovering our dues," it added.
Haryana Chief Minister Nayab Singh yesterday told the Assembly that nearly Rs 556 crore, including Rs 22 crore in interest, has been recovered in the IDFC First Bank fraud case within 24 hours.
"Nearly Rs 556 crore, including nearly Rs 22 crore in interest, came back within 24 hours," he said, adding that the entire amount due to various state government departments, boards and corporations has been credited back.
Earlier this week, IDFC FIRST Bank disclosed in a regulatory filing that it had detected a fraud of about Rs 590 crore involving certain Haryana government-linked accounts operated through its Chandigarh branch. The bank said the fraud was prima facie the result of unauthorised and fraudulent activities carried out by some employees at the branch, possibly involving other individuals.
The bank said the fraud surfaced when a Haryana government department requested closure and transfer of its account balance to another bank. During the process, bank officials found discrepancies between the amount mentioned and the actual balance in the account. Similar discrepancies were later identified in other government-linked accounts.
The Haryana Anti-Corruption Bureau has launched an investigation into the matter and four people have been arrested. The Chief Minister has said a committee has been constituted to examine the matter in detail and fix accountability.
