A senior government official said lenders have been asked to review their existing practices. “We have also asked lenders to prescribe standard operating procedures (SOPs) for branches handling government business and further strengthen the security framework for government accounts to mitigate fraud risks,” the official said, requesting anonymity. The ministry’s directive comes as investigating agencies continue to act against those involved in embezzling about ₹590 crore from the Haryana government’s bank accounts at the Chandigarh branch of IDFC First Bank.
A senior bank executive said all state-run banks have taken note of the instruction and will inform the government accordingly. “Some banks have already apprised the government that there are systems in place so that any unusual transactions are immediately flagged by the system,” he said, adding other lenders are also expected to further strengthen their systems.
The Enforcement Directorate (ED) arrested real estate businessman Vikram Wadhwa under the Prevention of Money Laundering Act (PMLA), 2002, in connection with its probe into an alleged fraud involving accounts maintained with IDFC First Bank, per latest reports.
Separately, the CBI arrested an IAS official last week over the alleged diversion of ₹79.46 crore from the Panchkula Municipal Corporation. “The investigation revealed that the account was opened in violation of the extant guidelines of the Haryana government’s finance department,” the investigating agency said in a statement. “Particulars recorded on the account opening form were entered in a manner designed to conceal the fraudulent transactions that they were planning.”
The ED said in March that public funds embezzled by the accused persons were routed and layered across multiple shell entities. Thereafter, most of the funds have been channelled through bank accounts of jewellers to create an illusion of gold purchases through bogus billing. The scam was perpetuated last year with the assistance of former bank employees, it said.