Enforcement Directorate Intensifies Probe in IDFC First Bank Rs 590 Crore Fraud Case

The Enforcement Directorate (ED) has launched searches at 19 locations across Chandigarh and the Tricity region in connection with the alleged Rs 590 crore fraud at IDFC First Bank’s Chandigarh branch involving funds from Haryana government agencies. Investigators are tracing the money trail linked to shell companies, jewellery firms, and real estate investments.

India’s financial crime watchdog, the Enforcement Directorate (ED), has intensified its probe into the alleged fraud at IDFC First Bank’s Chandigarh branch, where around Rs 590 crore belonging to various Haryana government agencies is suspected to have been embezzled. The agency’s Chandigarh zone on Wednesday conducted searches at 19 premises across Chandigarh and the Tricity region as part of its investigation into the money trail and suspected proceeds of crime linked to the case. Officials say the funds, which were deposited in the bank by different government departments, were allegedly diverted instead of being placed in fixed deposits, triggering a major financial probe involving former bank officials, business entities, and other beneficiaries.

The Enforcement Directorate confirmed that searches are underway at 19 locations connected to the alleged fraud at the Chandigarh branch of IDFC First Bank. According to officials familiar with the investigation, the agency is focusing on financial trails, shell companies, and intermediaries that may have facilitated the diversion of funds belonging to the Haryana government.

Preliminary findings suggest that around Rs 590 crore deposited by several government agencies of Haryana was misused. The money had been placed in accounts maintained at IDFC First Bank with the expectation that it would be invested in fixed deposits. However, investigators believe that instead of being parked in FDs, the funds were diverted by certain accused persons for personal gains.

The investigation has also brought Chandigarh-based hotelier Vikram Wadhwa under the scanner. According to officials, Wadhwa is suspected to have links to the financial transactions under investigation and is believed to be connected with real estate projects in the Tricity region.

People first noticed the suspected fraud in February 2026, all because of a simple banking request. The Haryana government wanted to close one of its accounts with IDFC First Bank and move the money elsewhere. When the bank started going through its usual checks, things didn’t add up. The balance the government saw didn’t match what the bank had on record. That gap set off alarms. After digging in, the bank kicked off a full investigation. They found 391 suspicious transactions spread over about 170 accounts. The missing money? About Rs 590 crore, at least in those first estimates.

Earlier this week, IDFC First Bank informed stock exchanges that it had completed reconciliation of all relevant accounts related to the Chandigarh branch case. In its regulatory filing, the lender said it had paid a net principal amount of Rs 645 crore to claimants. The amount was Rs 55 crore higher than the initial estimate of Rs 590 crore disclosed earlier. The bank clarified that the additional payout was linked to extra claims received from entities affected in the same incident and did not represent a new fraud case. It also stated that no further claims have been received since February 25, 2026, suggesting partial closure of the financial reconciliation process.

Despite the controversy, the bank said its deposit base has remained stable. According to its disclosure, total deposits stood at Rs 2,92,381 crore as of February 28, 2026, compared with Rs 2,91,133 crore as of December 31, 2025. The lender also reported an average Liquidity Coverage Ratio of 114 per cent for the ongoing quarter until February 28, describing the liquidity position as comfortable. The bank has said it will continue to pursue legal action against those responsible for the alleged fraud in an effort to recover the diverted funds.

Shares of IDFC First Bank remained under pressure following developments related to the fraud investigation. On March 11, 2026, the stock closed at Rs 65.92, down 2.01 per cent from the previous trading session. The stock had settled at Rs 66.16 earlier, compared with the previous close of Rs 67.27. Market participants are closely tracking regulatory developments and the progress of investigative agencies, as the case continues to unfold.