CBI Raids Chandigarh & Panchkula Over IDFC First Bank and AU Small Finance Bank Fraud Case
CBI conducted extensive searches at seven locations across Chandigarh and Panchkula in connection with the ₹590-crore Haryana bank scam. The multi-layered fraud involves the unauthorized diversion of state funds from eight government departments using accounts at IDFC First Bank and AU Small Finance Bank. Federal investigators seized incriminating financial logs and digital evidence, bringing the total number of arrests in the case to 16.
- Republic Business
- 2 min read
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The Central Bureau of Investigation (CBI) on Thursday cracked down on financial irregularities, searching seven strategic locations across Chandigarh and Panchkula. The searches target an organized corruption network operating under the IDFC First Bank and AU Small Finance Bank fraud case.
The operations focused on residential premises, business establishments, luxury jewelry showrooms, and properties belonging to the suspected beneficiaries of the multi-crore scam.
The latest action comes after the Haryana government formally handed over the probe to the CBI. The federal agency is investigating an organized, multi-layered conspiracy where bank officials allegedly colluded with public servants across various state departments, including the Haryana State Agricultural Marketing Board (HSAMB) and the Development and Panchayats Department.
Together, they set up unauthorized bank accounts to systematically misappropriate public funds. The investigation has rapidly escalated, with 16 accused individuals arrested so far, including senior government finance controllers and private shell company operators.
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Evidence Seized
During the intensive search operations on May 14, CBI teams recovered substantial evidence linking the suspects to the diverted state money.
Key details of the investigation include:
- Federal sleuths seized financial records, fraudulent transaction histories, and digital forensic evidence from the raided sites.
- The fraud was executed by routing siphoned government funds through layered banking structures into private entities. In one instance, a ₹10 crore fraudulent transfer from a newly opened savings account was split via RTGS directly to a private planning firm and contractors.
- State authorities have already initiated administrative actions alongside the CBI probe, dismissing top officials, including a Chief Accounts Officer and a state Superintendent, following evidence of illegal kickbacks consisting of cash, luxury vehicles, and real estate.