Chandigarh (Haryana) [India], February 24 (ANI): Haryana Chief Minister Nayab Singh Saini on Tuesday confirmed that the Rs 578 crore lost in a fraud at IDFC First Bank, including funds of state departments and boards, was fully recovered within 24 hours, with Rs 556 crore deposited and Rs 22 crore interest returned.

He added that a high-level committee will investigate and recommend measures to prevent future incidents.

Speaking at the Assembly, CM Saini said,'I want to clarify before this House that the entire amount lost in yesterday's incident, including the funds of some Haryana government departments and boards and corporations, has been deposited back into our accounts within just 24 hours. Speaker, approximately Rs 556 crore was deposited by the bank, of which we also received interest of approximately Rs 22 crore. The interest has also been returned. We have deposited that amount and recovered all of that money within just 24 hours...Four or five middle and lower-level employees of a bank branch in Chandigarh colluded to carry out this operation.'

He further stated that strict action will be taken against any government official or employee found involved in the matter.

'Strict action will be taken against any government official or employee involved in it... We would form a high-level committee that would not only hold the officers and employees involved in this matter accountable but would also make suggestions to prevent future situations like the one that has arisen today,' CM Saini added.

IDFC FIRST Bank has suspended four employees after it discovered fraudulent activity involving approximately Rs 590 crore in certain Haryana government accounts at its Chandigarh branch, the bank said in its official stock exchange filing.

The bank has launched an investigation and plans to recover the funds through legal and disciplinary action.

The Reserve Bank of India (RBI) Governor Sanjay Malhotra has said the Rs 590 crore fraud reported at one of the IDFC First Bank branches is not a systemic kind of issue, and the central bank is watching the developments. (ANI)