Haryana Forms High Level Panel to Probe Unauthorised Fund Transfers Involving IDFC First Bank and AU Small Finance Bank

The Haryana government has constituted a high level committee to examine unauthorised transfers of government funds involving IDFC First Bank and AU Small Finance Bank. The move follows concerns over the handling of public deposits and adherence to existing banking procedures. 

Alongside investigating the transfers, the panel will review policy implementation and administrative processes to identify potential gaps and recommend corrective measures aimed at strengthening financial governance, as per the Economic Times report.

Formation of the Investigation Committee

According to an official order issued by the state’s Personnel Department, the Governor of Haryana approved the creation of a four member committee to examine the circumstances surrounding the fund transfers. 

The panel will assess decisions taken by various government departments regarding the placement of significant public funds with the two banks.

The committee will be chaired by Arun Kumar Gupta, Additional Chief Secretary to the Haryana Finance Department, and includes senior administrative officials from development, municipal and public service departments.

Scope of the Inquiry

The panel has been assigned a broad mandate covering operational, procedural and compliance-related aspects linked to the transactions. A key area of examination will be issues related to non-reconciliation of accounts by government departments, which may have contributed to discrepancies in fund management.

The committee will also analyse whether procedural lapses, administrative shortcomings or systemic weaknesses played a role in enabling the unauthorised transfers.

Review of State Banking Policy

Beyond the immediate investigation, the panel will evaluate provisions within Haryana’s existing banking policy and examine how effectively these rules were implemented by government departments. 

The review aims to determine whether established guidelines were followed while empanelling banks and managing government deposits.

The exercise is expected to assess compliance levels and identify accountability wherever required.

Recommendations and Reporting Timeline

The committee has been directed to propose corrective and preventive measures to reduce the likelihood of similar incidents in the future. These recommendations may include procedural safeguards, improved monitoring systems and strengthened compliance mechanisms.

The panel is required to submit its findings and recommendations to the state government within one month.

Read More: Haryana Govt Recovers ₹556 Crore in IDFC First Bank Fraud in 24 Hours.

Conclusion

The formation of the inquiry committee reflects an administrative effort to address concerns surrounding public fund management and institutional oversight. The outcome of the investigation and subsequent policy review may influence future banking arrangements and governance practices within the state administration.

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