Rs 590 crore IDFC First, AU Bank scam: Haryana dismisses Panchayat Dept official over alleged role
Accused allegedly received Rs 6.45 crore, a Toyota Fortuner, and purchased a house in Mohali; Rs 10 lakh also deposited in daughter’s account, says dismissal order
The Haryana Government has dismissed the Development and Panchyats Department’s Superintendent Naresh Kumar under Article 311 (2) (b) of the Constitution of India for “grave misconduct and indiscipline” as he was involved in the Rs 590 crore IDFC First and AU Small Finance Banks scam.
According to the dismissal order, he allegedly received Rs 6.45 crore from ‘Swastik Desh Projects’, a shell company formed by him to siphon off government funds. Also, Rs 10 lakh was allegedly deposited into his daughter’s account; he was allegedly given a Toyota Fortuner by a co-accused; and he allegedly purchased a house in IT City, Mohali, for Rs 1 crore.
Article 311 (2) (b) allows the dismissal of a government employee without an inquiry where “it is not reasonably practicable to hold such inquiry.”
The dismissal order, dated April 23, issued by Additional Chief Secretary, Development and Panchayats Department, Vijayendra Kumar, reasoned that “considering the organised nature of the conspiracy, the involvement of multiple external agencies, the likelihood of witness influence, and the real risk of tampering with crucial evidence, it is apparent that holding a regular departmental inquiry is not reasonably practicable in the present case.”
When the scam came to light during an internal inquiry by the Development and Panchayats Department, the State Vigilance and Anti-Corruption Bureau (SV&ACB), Haryana, registered the FIR on February 23 under the Prevention of Corruption Act, along with charges of cheating, forgery, criminal conspiracy, fraudulent or dishonest use of forged documents, and criminal breach of trust under the Bharatiya Nyaya Sanhita (BNS), 2023. On April 8, the CBI registered the FIR based on SV&ACB’s case.
The dismissal order of Naresh Kumar (referred as Naresh Bhuwani in the report of SV&ACB, Panchkula), said that he in collusion with private individuals and other co-accused persons, “was actively involved in the creation and operation of a firm namely ‘Swastik Desh Projects’, which was not a genuine commercial entity but was primarily used as a conduit for illegal diversion and transfer of Government funds through layered and fictitious banking transactions.”
He allegedly received funds from ‘Swastik Desh Projects’ into his two accounts maintained at Union Bank of India, Sector 32, Chandigarh, and at HDFC Bank, Madhya Marg, Sector 8, Chandigarh, as well as into the account of his daughter maintained at the same HDFC branch.
According to a report received from the SV&ACB, he allegedly received Rs 1 crore on November 18, 2025, Rs 30 lakh on November 21, 2025, Rs 25 lakh on November 28, 2025, Rs 50 lakh on December 2, 2025, Rs 50 lakh on December 12, 2025, Rs 1 crore on December 18, 2025, Rs 40 lakh on January 7, 2026, Rs 50 lakh on January 12, 2026, Rs 25 lakh on January 22, Rs 25 lakh on January 24, and Rs 50 lakh on February 5. He had also received Rs 40 lakh on November 13, 2025, Rs 40 lakh on November 15, and Rs 20 lakh on November 27, 2025, said the dismissal order. It amounts to Rs 6.45 crore in payments to his accounts, while his daughter’s account allegedly received an additional Rs 10 lakh on August 29, 2025.
Besides, he allegedly received cash on several occasions, May 15, 2025; June 2, 2025; June 14, 2025; July 24, 2025; September 23, 2025; November 1, 2025; and November 3, 2025, as per the dismissal order. Alleged mastermind of the scam, Ribhav Rishi, gave him a Toyota Fortuner in January 2026 as illegal gratification. He purchased a house in IT City, Sector-66B, Mohali, in the name of his wife for a documented amount of Rs 1 cr.
Ribhav Rishi was a bank manager at IDFC First Bank, Sector 32, Chandigarh. Most of the alleged fraudulent transactions at IDFC First Bank occurred during his tenure, and when he moved to AU Small Finance Bank, he allegedly continued the illegalities.
“All this establishes direct financial benefits and personal enrichment by Naresh Kumar from the alleged crime. It demonstrates the scale and magnitude of financial fraud and misuse of public funds,” said the dismissal order.
He was arrested on April 6 in the scam. During his interrogation, he allegedly admitted to being aware of the opening and operation of departmental accounts in the said banks, to having knowledge of transactions carried out therein, and to having further played a role in facilitating the opening and manipulation of accounts relating to the Municipal Corporation. Panchkula,” according to the dismissal order.
The dismissal order said that he “acted as a crucial link between co-accused persons, bank officials, and other private individuals, and played an active role in coordinating and executing the fraudulent scheme, thereby demonstrating that he was not a passive participant but an integral part of a well-organised criminal conspiracy.”
