CBI Conducts Searches in IDFC First Bank-AU Small Finance Bank Fraud Case Worth Rs 661 Crore

CBI Conducts Searches in Chandigarh, Panchkula, and Delhi-NCR in Rs 661 Crore Fraud Case

The Central Bureau of Investigation (CBI) has conducted searches at six locations in Chandigarh, Panchkula, and Delhi-NCR in connection with an alleged Rs 661 crore fraud involving the siphoning of government funds from departments of the Haryana government and the Chandigarh administration.

The searches were carried out on Friday at premises linked to senior Haryana cadre public servants and Noida-based Vipam Consultancy Pvt Ltd and its director as part of an ongoing probe into the alleged misappropriation of funds parked with IDFC First Bank and AU Finance Bank.

The alleged fraud affected eight departments of the Haryana government and two departments of the Union Territory of Chandigarh – Municipal Corporation Chandigarh and Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST). The CBI alleged that public servants had colluded with bank officials and had facilitated the opening of accounts, transfer of funds, and subsequent diversion of funds.

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The agency also alleged that the public servants received undue advantages for facilitating the transactions and failing to act against the irregularities. The investigating agency further alleged that Vipam Consultancy Pvt Ltd received proceeds of crime in its bank account, which were later transferred to the personal account of its director.

Key Figures and Entities Involved

The probe stems from one case taken over from the Haryana State Vigilance and Anti-Corruption Bureau and two cases originally registered by the Economic Offences Wing police station in Chandigarh. The cases relate to alleged criminal conspiracy, misappropriation of government funds, and related offences committed in connivance with bank officials and public servants.

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The CBI said it has already filed its first chargesheet before a special court in Panchkula detailing the alleged role of public servants from the Haryana Power Generation Corporation Ltd and Haryana School Shiksha Pariyojna Parishad. The chargesheet also outlined the alleged modus operandi used to siphon off government funds parked with the IDFC First Bank and AU Finance Bank.

The investigation is continuing, and additional chargesheets will be filed against other accused found involved in the case.