The Central Bureau of Investigation (CBI) has intensified its investigation into an alleged ₹661-crore fraud involving the diversion of government funds through IDFC First Bank and AU Small Finance Bank. As part of the probe, the agency conducted searches at six locations across Chandigarh, Panchkula and the Delhi-NCR region. The raids targeted premises linked to senior Haryana cadre officers, including IAS and IFS officials, as well as a Noida-based consultancy firm and its director.
According to investigators, funds belonging to various departments of the Haryana government and the Chandigarh Administration were allegedly diverted through a network involving bank officials, public servants and private entities. The CBI suspects that some officials received undue benefits for facilitating transactions and overlooking irregularities that enabled the movement of public money. The agency is examining whether there was a larger nexus between government officers and banking personnel.
During the searches, investigators reportedly recovered documents, digital records and financial information that could help trace the flow of funds. The CBI is also looking into a suspected benami property worth nearly ₹20 crore that is believed to be linked to a senior public servant under scrutiny in the case.
The fraud case has already led to multiple arrests and legal action. Earlier investigations resulted in charges being filed against bank officials, government employees and private individuals. The Enforcement Directorate (ED) is conducting a parallel money-laundering probe and has arrested businessman Vikram Wadhwa in connection with the case.
The alleged scam first came to light after authorities detected irregular transactions involving government deposits maintained with the banks. Subsequent investigations suggested that funds were moved through unauthorized channels and allegedly misappropriated over a period of time.
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