The Haryana State Vigilance and Anti-Corruption Bureau (ACB) on Wednesday made a major breakthrough in the Rs 590-crore fraud linked to IDFC First Bank, arresting four key suspects even as the FIR points to a wider conspiracy involving forged cheques, bank officials and private entities.Those arrested include former bank manager Ribhav Rishi, former relationship manager Abhay Kumar. Both were posted at IDFC First Bank’s branch in Sector 32, Chandigarh and were described as “masterminds” of the fraud. Also taken into custody are Abhay’s wife Swati Singla and her brother Abhishek Singla, both promoters of Swastik Desh Projects, where a substantial portion of the funds was allegedly diverted. Investigators said Swati held a 75 per cent stake in the firm while Abhishek owned the remaining 25 per cent.The accused were produced in a local court on Wednesday, where the ACB sought their remand for interrogation.Addressing a press conference, Arshinder Singh Chawla (IPS), Director General, ACB, Haryana, said the probe was initiated after serious irregularities surfaced in government-linked bank accounts, following which an SIT was formed under SP Panchkula Range ACB, Ganga Ram Punia.The money was linked to two state government accounts in IDFC First Bank and AU Small Finance Bank under the Mukhya Mantri Grameen Awas Yojna 2.0 scheme.Chawla said the initial breakthrough came within 24 hours of registration of the FIR. He said priority was being given to tightening surveillance on private individuals, as they were considered a potential flight risk.“It was found that nearly half of the siphoned amount, roughly Rs 300 crore, was transferred to Swastik Desh Projects and subsequently routed to multiple other accounts, creating a long money trail,” said Chawla. The banks involved are located in Chandigarh, Panchkula and Mohali. “Normally, the movement of government funds outside the state raised alerts, but because the Tricity shares proximity and a common capital, the transactions did not immediately trigger red flags at higher levels,” he added.According to ACB officials, the fraud involved siphoning off government welfare funds from various Haryana departments through forged cheques. In one instance, a cheque mentioned Rs 2.5 crore in figures but Rs 25 crore in words, yet the bank cleared the transaction.Chawla also disclosed that IDFC First Bank had returned Rs 583 crore, including interest, to the Haryana Government. However, he emphasised that restitution of funds does not dilute the criminal investigation.Investigators believe the four arrests may only be the beginning in what is shaping up to be one of the largest alleged banking frauds involving Haryana Government funds. The ACB has also noted alleged non-cooperation from AU Small Finance Bank in furnishing complete records despite repeated communications.Officials said the FIR kept the scope of investigation open to examine accounts of other Haryana departments maintained in the two banks. “Tracking these trails is a cumbersome process. We are bringing a CA on board to assist the probe,” Chawla said.In the wake of the fraud, the Haryana Government has de-empanelled both IDFC FIRST Bank and AU Small Finance Bank from handling state funds. The government has begun shifting its accounts to nationalised banks to prevent future risks.The FIR registered by the State Vigilance and Anti-Corruption Bureau, Panchkula, names unknown officials of IDFC FIRST Bank and AU Small Finance Bank along with other public and private persons.The case has been booked under Sections 13(1)(a) and 13(2) of the Prevention of Corruption Act, 1988, and multiple provisions of the Bharatiya Nyaya Sanhita, 2023.