Haryana Chief Minister Nayab Singh Saini on Tuesday announced that Rs 556 crore, including Rs 22 crore interest, had been recovered from IDFC First Bank and deposited back into the state government’s accounts even as an internal inquiry revealed how the alleged scam unfolded over several months between September 2025 and January 2026.According to the inquiry, IDFC First Bank honoured multiple cheques and debit notes bearing the “forged signatures” of then IAS officer DK Behera, even after he had relinquished charge on October 28, 2025. The cheques were processed despite discrepancies, including one where the amount in figures was written as Rs 2.5 crore, while the amount in words read “Rupees twenty-five crores”.The Development and Panchayats Department had opened two accounts on September 26, 2025, under the Mukhyamantri Gramin Awas Yojana (MMGAY) 2.0 and deposited Rs 50 crore in IDFC First Bank and Rs 25 crore in AU Small Finance Bank. No approval had been granted to utilise the funds.On January 13, 2026, the department asked both banks to close the accounts and transfer the funds with interest to Axis Bank. While AU Small Finance Bank transferred Rs 25.46 crore and closed the account, IDFC First Bank transferred only Rs 1.27 crore before closing the account, prompting suspicion.A three-member inquiry committee was constituted on February 11. The bank was told to provide the account-opening form, log details and voucher details for all transactions, which it submitted on February 16. The bank records showed that Rs 46.56 crore had been transferred to AU Small Finance Bank through forged cheques and debit notes. The cheques bore forged signatures of the then Director General DK Behera despite the fact that he had relinquished the charge on October 28, 2025.It also came to light that the debit notes attached with the cheques did not have memo or dispatch numbers and appeared to have contained forged signatures.It was observed that one of the cheques processed by IDFC First Bank mentioned the amount in figures as Rs 2,50,00,000, whereas the amount in words was written as “Rupees twenty-five crores”, which was honoured and processed by the bank, indicating serious discrepancy.Call and SMS logs showed transaction alerts were sent to a mobile number registered in the name of Prince, a superintendent in the office of the Director, Panchayats, who was questioned by the committee. The scheme in-charge told the panel that the department does not use cheques for payments under the MMGAY 2.0.The probe committee also summoned record from AU Small Finance Bank, but only a “forged” account statement was provided. The committee said prima facie, the signature on the cheques processed by IDFC First Bank didn’t seem to match the ones appeared on the account-opening form.The committee also flagged unexplained transactions linked to the Haryana State Pollution Control Board and the Municipal Corporation, Panchkula, and payments to Swastik Desh Projects.Based on the report, the state vigilance and anti-corruption bureau registered an FIR under the Prevention of Corruption Act and sections related to cheating and forgery against unknown bank officials and others.