Haryana Power Body Ex-Director Dismissed in IDFC First and AU Small Finance Bank Scam Case

May 4, 2026

Chandigarh: In a major development in the ongoing banking fraud probe linked to Haryana government funds, a senior finance official from a power sector corporation has been dismissed over alleged involvement in the ₹590 crore IDFC First Bank and AU Small Finance Bank scam.

Allegations of Large-Scale Fraudulent Transactions

Investigators allege that the former Chief Financial Officer (CFO) facilitated fraudulent transactions worth around ₹50 crore through manipulated and unauthorized bank accounts linked to government departments. These transactions are believed to be part of a wider financial irregularity network under investigation.

Bribery Charge Also Under Scanner

Sources further indicate that the officer is also accused of accepting a bribe of approximately ₹50 lakh in connection with the alleged diversion and manipulation of funds. Authorities are examining financial trails and account operations linked to the accused.

Action Linked to Ongoing Multi-Bank Scam Probe

The dismissal comes amid a wider investigation into irregularities involving IDFC First Bank and AU Small Finance Bank, where hundreds of crores of government-linked funds are suspected to have been siphoned through fraudulent accounts and shell entities.

Officials said disciplinary action was taken based on findings of the vigilance and anti-corruption investigation, while further legal proceedings are expected as the probe continues.

Wider Crackdown Expected

The case is part of a larger crackdown on financial misconduct involving government deposits in private banks. Investigators are tracing fund flows, beneficiary accounts, and possible collusion between bank officials and public servants.