The State Vigilance and Anti-Corruption Bureau has registered an FIR in the alleged Rs 590-crore fraud involving Haryana Government accounts at the Chandigarh branch of IDFC First Bank and AU Small Finance Bank.The case has been filed against bank officials, public servants and other individuals under Section 13(2) of the Prevention of Corruption Act, 1988, and Sections 316(5), 318(4), 336(3), 338, 340(2) and 61(2) of the Bharatiya Nyaya Sanhita (BNS).Also read: IDFC First Bank flags Rs 590-cr fraud linked to Haryana Govt accounts, Chandigarh branch under lensRBI watching development around IDFC First Bank fraud, no systemic issue: Governor MalhotraChief Minister Nayab Singh Saini told the Haryana Vidhan Sabha that strict action would be taken against those found guilty.Sources said the state government has directed the Vigilance Bureau to examine all aspects of the alleged fraud and conduct a comprehensive probe. Later, Saini speaking to mediapersons announced the formation of a high-level committee to investigate the matter.The issue figured prominently in the Assembly on the second day of the ongoing budget session. Leader of the Opposition Bhupinder Singh Hooda sought to know what steps the government had taken after the fraud came to light.“The bank has already suspended four of its employees but the government has not initiated any action on its part. We want to know the steps taken by the government following this disclosure,” Hooda said.Congress leader Ashok Arora sought to know why the government had parked funds in a private bank rather than a nationalised bank. Responding to the concerns, the Chief Minister termed the matter “very serious” and assured the House that the state’s funds were secure.“Haryana’s money is safe and every single penny will be returned. We do not need to fear that. Three or four departments parked their funds in this bank. We have been very proactive and have been closely monitoring the matter. The bank only wrote to the regulator on February 21 while we had found the mismatch in the statements and ordered transfer of funds to another bank. The State Vigilance and Anti-Corruption Bureau has been handed over the case and will investigate it thoroughly,” Saini said.He added that the accounts had been closed and funds shifted to other banks, asserting that those responsible would not be spared.“Whether it is a bank employee or an official, we will get to the bottom of this and punish those responsible. The bank has been de-empanelled,” he said.However, Hooda and Congress MLAs maintained that it was the bank which had detected the fraud, contrary to the government’s claims.Meanwhile, AU Small Finance Bank, which was also de-empanelled by the Haryana Government, clarified that based on available facts and a preliminary review, there was no indication of “any financial impact or any fraudulent activity towards the Bank”.In a letter addressed to the National Stock Exchange of India and the BSE, the bank stated: “The bank’s Board has been informed and the Bank continues its internal review on this matter. To ensure a fair and transparent review, certain employees have been placed off-duty. The Bank is also engaging with the Government of Haryana for assessing the reasons for de-empanelment (the de-empanelment order was received on February 18, 2026), and will fully cooperate with the Government and any other authorities, as required.”The bank further disclosed that as on February 17, 2026, it held total deposits of Rs 735 crore from the Haryana Government, which reduced to Rs 538 crore as on February 21, 2026 across 200 accounts, post de-empanelment.