Haryana CM Nayab Saini invokes PM Modi while justifying suspension of IAS officers following bank scams

Haryana CM Nayab Singh Saini invoked PM Narendra Modi while justifying the suspension of two IAS officers, following the Rs 590-crore IDFC First and AU Small Finance Bank scam, and the Rs 150-crore Kotak Mahindra Bank scam.

Saini said, “The state government has zero tolerance for corruption.” He added, “We are answerable to the state’s people as the matter pertains to their hard-earned money.”

“We keep informing people about the steps taken for the state. This government runs on the tradition set up by PM Modi. This state has to be taken forward.”

While speaking to the media on Friday, he said that a major fraud had taken place at IDFC First Bank and AU Small Finance Bank. “But, we got our money in 24 hours. Then a scam took place in Kotak Mahindra Bank. They have also returned the money,” he claimed.

In reality, Kotak Mahindra Bank has only paid Rs 127 crore, which was the principal amount.

The government then set up a committee under the Principal Secretary to the CM and the Additional Chief Secretary, Finance, Arun Kumar Gupta, to investigate the lapses and recommend changes. It has also submitted its report to the state government.

The State Vigilance and Anti-Corruption Bureau, Haryana, investigated the cases, where they arrested 15 people in IDFC First and AU Small Finance Bank case and six in the Kotak Mahindra Bank matter.

Now, the CBI is investigating the IDFC First and AU Small Finance Bank scam.

On Wednesday’s reshuffle, the state government had taken away key departments from some IAS officers, who had headed the departments in the past where the scams took place. But they were not suspended. Only two IAS officers, Pardeep Kumar and Ram Kumar Singh, have been suspended.

The IDFC First and AU Small Finance Bank scam involves fraudulent banking operations and fictitious transactions allegedly carried out systematically to siphon off government funds into the accounts of shell entities. In the Kotak Mahindra Bank scam, as per the FIR, the Panchkula MC maintained 16 FDs totaling Rs 145.03 crore, with a maturity value of Rs 158.02 crore, at the bank's Sector 11 branch in Panchkula. Of the 16 FDs, 11, amounting to Rs 59.58 crore, matured on February 16. When the MC contacted the bank, officials provided statements that neither matched one another nor the MC's records, particularly regarding the FDs.