CBI court of Haryana rejects bail plea of ₹657-cr bank scam ‘mastermind’

The CBI Special Court, Haryana, on Friday dismissed the bail application of Ribhav Rishi, alleged mastermind of the Rs 657-crore IDFC First Bank-AU Small Finance Bank scam, after the investigating agency accused him of siphoning off Haryana Government funds for personal use, including property purchases, luxury stays, foreign trips and parties.

The CBI told the court that its investigation, based on documentary, banking, electronic and testimonial evidence, had established Rishi as the “principal architect and mastermind” of the alleged conspiracy.

According to the agency, Rishi, while posted as branch manager at IDFC First Bank, Sector 32, Chandigarh, allegedly approached senior Haryana Government officials and initiated banking proposals with various departments even before the bank was empanelled for government business in the state.

The CBI alleged that he falsely represented higher rates of interest to government officials and got them to invest funds in the branch where he was posted. He allegedly bypassed banking checks by getting colleagues to process fraudulent transactions and fabricated approval emails and Urban Banking Exception Approval Requests in the names of senior bank officials for transactions beyond his delegated authority.

The agency further alleged that the siphoned-off funds were routed through shell entities and converted into cash, real estate, gold and other assets. Some of the money was allegedly used to sponsor parties with dancers and escorts, stay in luxury hotels and fund leisure and foreign trips.

The CBI alleged that Rishi funded a Goa trip of a co-accused at a cost of Rs 2.52 lakh and an international trip of another accused, including a stay at Dubai’s Burj Al Arab, costing Rs 7.16 lakh. It also alleged that cash, iPhones and gold were delivered to other accused persons.

The agency claimed Rishi personally authorised at least 25 fraudulent debit transactions involving Rs 187.35 crore. It alleged that Rs 4.40 crore and Rs 1.50 crore from two shell entities controlled by him were transferred to his personal accounts, while his wife, Divya Arora, allegedly received Rs 18.32 crore.

Seeking bail, Rishi argued that he could neither influence witnesses nor tamper with evidence as the case largely rested on documentary and electronic evidence.

After hearing both sides, Special Judge Vijayant Sehgal dismissed his bail application.