₹600-crore IDFC First Bank fraud case: Ex-finance director of Haryana power firm gets bail in 2 FIRs

600 Crore IDFC First Bank Fraud: Ex-Finance Director of Haryana Power Firm Gets Bail

600 crore IDFC First Bank fraud - The 600 crore IDFC First Bank fraud case has taken a significant turn with the Punjab and Haryana High Court granting bail to Amit Dewan, the former finance director of the Haryana Power Generation Corporation Limited (HPGCL). The decision follows a thorough examination of the evidence gathered during the investigation, which centers on two criminal FIRs alleging financial misconduct linked to the massive ₹600-crore scheme. Dewan, who was detained on March 18, now faces a new phase in the legal proceedings as the court evaluates his role in the alleged conspiracy.

Background of the Fraud and Legal Proceedings

The case emerged after the Haryana state vigilance and anti-corruption bureau (ACB) launched an inquiry following a February 23 first information report (FIR). Dewan’s employment with the Uttar Haryana Bijli Vitran Nigam (UHBVN) was terminated in May, citing misuse of authority that allegedly disrupted utility operations. The two FIRs under investigation involve separate charges: one related to a ₹86-crore misappropriation at the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST), a government-affiliated entity, and the other concerning financial irregularities in Haryana. The Central Bureau of Investigation (CBI) is now examining these allegations in detail.

The 600 crore IDFC First Bank fraud case has raised questions about the mechanisms of financial oversight and accountability. Prosecutors claim Dewan was part of a conspiracy involving officials from IDFC and AU Small Finance Bank, as well as others in Chandigarh and Haryana. However, Dewan’s legal team argues that the initial FIRs did not directly name him, and his role in the scheme remains unclear. The court's decision to grant bail reflects its assessment that the current evidence does not conclusively link him to the illicit activities under investigation.

Legal Arguments and Court Findings

Justice Sandeep Moudgil, who presided over the bail application, emphasized the lack of direct financial evidence tying Dewan to the alleged proceeds. “No funds have been recovered from him, and no assets or accounts have been identified as sources of the siphoned money,” the judge stated. This finding was based on the prosecution’s argument that Dewan benefited from a conspiracy but was not the primary orchestrator. The legal battle now hinges on the CBI’s ability to establish a clearer connection between Dewan and the fraudulent transactions.

Salil Dev Singh Bali, Dewan’s legal representative, further contended that the petitioner was not a signatory to the relevant bank accounts and had no control over the cheque books involved. “The individuals responsible for managing the accounts and executing the transactions have not been charged, despite their closer involvement in the alleged activities,” Bali argued. These claims highlight the complexity of the 600 crore IDFC First Bank fraud case and the need for more concrete evidence to support the prosecution’s stance.

The CBI’s ongoing investigation into the 600 crore IDFC First Bank fraud case has uncovered a web of interconnected roles and responsibilities. While the prosecution asserts Dewan was part of a broader conspiracy, the court remains cautious, noting that the evidence thus far does not confirm his direct participation. The case also underscores the importance of the managing director’s approval in the financial proposals, as the MD has not been charged in either FIR. This has sparked discussions about the chain of command and accountability within the Haryana power sector.

Notably, Balwant Singh, a former HPGCL employee who died by suicide on May 8 in Chandigarh, had allegedly linked Dewan to the misuse of cheque books and forged signatures in his suicide note. However, the court found this connection insufficient to warrant continued detention. As the 600 crore IDFC First Bank fraud case progresses, stakeholders in the Haryana power sector and financial institutions will be closely monitoring the outcome to assess its implications for future governance and transparency.