IDFC First Bank Fraud: CBI Chargesheets Over Rs 657 Crore Bank Scam In Haryana, Chandigarh; Names Bankers, Officials, Private Players

Chandigarh: The Central Bureau of Investigation (CBI) filed 2 separate chargesheets on Friday in connection with a massive financial fraud involving public funds worth Rs 657 crore siphoned off from IDFC First Bank accounts linked to the Haryana government and Chandigarh Smart City Limited (CSCL). According to the officials, the cases revolved around an alleged sophisticated scheme in which government money was moved through fictitious transactions into accounts tied to shell entities.

According to a CBI spokesperson, the losses amount to Rs 504 crore in the Haryana government matter and Rs 153 crore in the CSCL case. The investigating agency asserted that the probe revealed that the funds were routed through multiple layers before being diverted into private hands. It was also added that the investigation remains ongoing and more chargesheets are expected as further evidence is gathered.

The fraud surfaced after irregularities were flagged in transactions involving several state departments and a smart city project. The CBI stepped in after the cases were transferred from state agencies, and the inquiry has since mapped a complicated money trail that hints at the involvement of the bank officials, government staff, and private individuals working in concert.

Haryana Government Funds Diverted Through Shell Firms

In the Haryana government case, the CBI submitted its chargesheet before the Special Court in Panchkula. The case concerned 8 departments of the state government and was handed over to the agency by the State Vigilance and Anti-Corruption Bureau (ACB). The fresh chargesheet named 2 private persons who allegedly received the diverted money.

“This is the second chargesheet in the Haryana government case. The CBI has already chargesheeted 15 accused persons and companies earlier: three government servants, six bankers, two companies and four private persons,” the spokesperson said. The central agency found that large sums were moved to various shell companies and small jewellery entities, then siphoned off under the guise of gold purchases and real estate investments. The probe also uncovered massive cash withdrawals along the money trail, pointing to efforts to obscure the origin of the funds.

Chandigarh Smart City Case Targets Bank And Civic Officials

The CBI also filed its first chargesheet in the CSCL matter before the Special Court in Chandigarh. A total of 7 people have been named as accused, including 5 bank officials, one Chandigarh Smart City Limited employee and one other person. The agency had taken over 2 cases from the Economic Offences Wing (EOW) Police Station in Chandigarh, covering CSCL and CREST Chandigarh.

“Offences cited in the chargesheets relate to criminal conspiracy, criminal breach of trust, forgery and cheating, along with offences under the Prevention of Corruption Act,” the CBI spokesperson said, adding that the officials are also scrutinising the role of a Chandigarh-based hotelier engaged in construction projects across the Tricity area of Chandigarh, Mohali and Panchkula, as well as AU Small Finance Bank, whose involvement is under examination.

Bank Repays Departments, Vows Recovery Action

Further, IDFC First Bank, through which the fraudulent transactions took place, stated that it had already reimbursed the Haryana government departments in full. The lender paid out 100 percent of the principal and interest, which worked out to 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 our dues,” IDFC First Bank stated in a regulatory filing. The present investigation continued to widen, with the CBI confirming that additional chargesheets are in the pipeline, as the agency officers trace further links and assets tied to the scam.