The Enforcement Directorate (ED) arrested Naresh Kumar, former superintendent of Haryana's Panchayat Department, on June 10 under the Prevention of Money Laundering Act (PMLA) in connection with the alleged ₹645 crore IDFC Bank fraud and money laundering case. According to the ED, Naresh Kumar was produced before a Special PMLA Court, which remanded him to four days of ED custody until June 14. The arrest marks the latest development in the case, following earlier arrests of Ribhav Rishi, Abhay Kumar and Vikram Wadhwa in connection with the alleged fraud. The ED investigation has uncovered the alleged embezzlement of around ₹645 crore from bank accounts belonging to the Haryana government, the Chandigarh administration and two private schools.
The ED investigation has revealed that the fraud was carried out through a network involving key accused Vikram Wadhwa, Ribhav Rishi and Abhay Kumar, along with certain bank officials and government employees. According to the agency, a shell entity named Swastik Desh Project was used to siphon off government funds and route them through multiple layers of transactions to conceal the source of the money. The ED alleged that Naresh Kumar played a crucial role in facilitating the diversion of public funds and helping obscure the cash trail. The agency found that around ₹1.20 crore was transferred into bank accounts linked to Naresh Kumar and his family members. The proceeds of crime were allegedly routed through several shell companies and intermediary entities as part of a layered money-laundering operation, including Capco Fintech, Swastik Desh Project, RS Traders and SRR Planning Gurus Pvt Ltd.
According to The Economic Times, KPMG's forensic review confirmed collusion involving bank employees, government officials, and third parties in the fraud case. In an exchange filing released after market hours on Friday, IDFC First Bank said KPMG's forensic review reaffirmed that the fraud arose from collusion involving certain employees or former employees at the Chandigarh branch, some state government employees and certain third parties. The review reiterated that the net principal amount involved in the alleged fraud stood at ₹646 crore. The bank has compensated the affected government departments and is cooperating with authorities. IDFC First Bank stated that it paid the aforesaid amount and applicable interest to the concerned departments and has recognised the same in the books of accounts in Q4 FY26. The bank emphasized that it is a victim of this financial fraud and is working with investigative authorities.
IDFC First Bank shares fell nearly 1% to ₹71.64 during Monday morning trade following the CBI searches. The stock has declined around 16% so far in 2026, though it has gained more than 1% over the past week. The lender currently has a market capitalisation of nearly ₹62,000 crore. As reported by The Economic Times, the bank has already filed its first chargesheet before a special court in Panchkula detailing the alleged role of public servants from the Haryana Power Generation Corporation Ltd and Haryana School Shiksha Pariyojna Parishad. The investigation is continuing and additional chargesheets will be filed against other accused found involved in the case.
IDFC First Bank first disclosed the alleged fraud in February after identifying irregularities in accounts linked to the Haryana government at one of its Chandigarh branches. The issue surfaced when a Haryana government department requested closure of its account and transfer of funds to another bank. During the review process, the bank found discrepancies between the amount requested and the actual account balance, triggering a deeper investigation. In Q4 FY26, the bank reported a 4.9% year-on-year increase in net profit to ₹319 crore, compared with ₹304 crore in the corresponding quarter last year. Net interest income rose 15.7% to ₹5,677 crore in the March quarter from ₹4,907 crore a year earlier. The bank's normalised profit after tax stood at ₹746 crore after excluding one-time items including the fraud involving Haryana government accounts, treasury losses and a tax refund.
