CBI Files First Chargesheet In Rs 504 Crore Haryana Bank Siphoning Scam Including IDFC First, AU Small Finance Bank Officials

The Central Bureau of Investigation (CBI) on Thursday filed its first chargesheet before the Court of Special Judge (CBI) in Panchkula, Haryana. The filing marks the completion of the initial phase of investigation into the large-scale siphoning of Haryana government funds.

The probe focuses on an organized network involving bank officials, state public servants, and private individuals. A total of 15 accused persons have been named in the chargesheet, and are currently in judicial custody.

The chargesheeted individuals span multiple institutions and state departments, including six bank officials from IDFC First Bank and AU Small Finance Bank for facilitating the illicit transactions.

The accused also includes three public servants belonging to the Haryana Power Generation Corporation Limited (HPGCL), the Development and Panchayat Department, and the Haryana School Shiksha Pariyojana Parishad. Furthermore, the agency has named two shell entities along with their three partners or directors, and one private individual.

The case involves fraudulent diversion of Rs 504 crore from official bank accounts maintained by various Haryana government departments. Agency findings indicate that the bank officials acted in criminal connivance with public servants posted at the respective departments to execute these transfers.

The funds were systematically routed into accounts held by shell entities to obscure the money trail. The accused face prosecution for offences including criminal conspiracy, criminal breach of trust, cheating, forgery, and the destruction of evidence. Charges have also been framed under the relevant provisions of the Prevention of Corruption Act, 1988.

Investigation Widens

The financial irregularities were originally detected during internal departmental audits, leading to an initial case registration by the State Vigilance and Anti-Corruption Bureau of Haryana. Recognizing the interstate banking links and the scale of the embezzlement, the Haryana government subsequently transferred the probe to the CBI.

While the investigation against the 15 arrested individuals stands complete for the current offences, CBI officials stated that the wider probe remains open. The agency is continuing its inquiry into additional suspect accounts and potential misappropriation within other state government departments.

Also read: Inside RBI’s $5 Billion Playbook to Defend the Rupee from Freefall