IDFC First Bank Embezzlement Case: CBI Registers First Information Report

CBI Registers FIR in Rs 550 Crore Embezzlement Case from Haryana Government Accounts

The Central Bureau of Investigation (CBI) has registered a First Information Report (FIR) in the alleged embezzlement of Rs 550 crore from the Haryana government's accounts maintained with IDFC First Bank in Chandigarh. This move follows the CBI taking over the investigation in the matter, as per official sources.

The Haryana government had transferred the probe to the central probe agency after sending a referral to the Department of Personnel and Training on Wednesday. The CBI had previously been investigating a case that was initially probed by the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB).

According to the vigilance department of Haryana, the case involves fraudulent banking operations and fictitious transactions allegedly undertaken in a systematic manner to siphon off government funds into the accounts of shell entities, including Swastik Desh Project, SRR Planning Gurus Pvt. Ltd., Cap Co Fintech Services, R.S. Traders, and other associated firms/individuals. This resulted in a substantial loss to the public exchequer.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Preliminary probe reveals that Haryana government funds were supposed to be deposited by various departments of the state in the bank in fixed deposits (FDs) but were allegedly diverted by the accused for their personal purpose. A significant amount of cash withdrawals has been noticed in this money trail, with funds being transferred to various shell companies and minor jewellery entities before being siphoned off under the guise of gold purchase and investment into the real estate sector.

The magnitude and complexity of the case, including its inter-state ramifications and the possibility of transnational diversion of proceeds of crime, have led the state government to entrust the investigation to a specialized central agency to ensure a comprehensive, impartial, and credible probe.

IDFC First Bank's Response

IDFC First Bank had previously stated that it has paid out 100 per cent of the principal and interest to the relevant departments of the Haryana government, totaling Rs 583 crore. The bank remains committed to working together with the relevant Haryana Government departments and the law enforcement agencies to pursue actions against the perpetrators of the fraud and looks forward to recovering its dues.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The SV & ACB has arrested several individuals in the case, including two ex-IDFC First Bank employees and private persons who own a partnership firm. The role of a Chandigarh-based hotelier, involved in construction of real estate projects in the Tricity, and AU Small Finance Bank is also under the scanner.