The Central Bureau of Investigation (CBI) carried out searches at various locations in Chandigarh and Panchkula related to the Haryana IDFC First Bank/AU Small Finance bank scam. The searches aimed to track the flow and diversion of unlawfully acquired funds from a significant embezzlement of funds, as stated in an official release. These searches encompassed 7 sites, including residential areas, jewelry stores, and places linked to the misused government funds and other private entities under scrutiny.
During the searches, incriminating documents and items were discovered and confiscated, such as financial records and digital evidence concerning the fraud and suspected misappropriation. To date, 16 individuals have been apprehended in connection with the case. The CBI is intensifying its investigation, pursuing various leads to ensure a thorough and prompt inquiry, according to the agency’s statement.
The case, involving alleged misappropriation of government funds through illicit means by officials of IDFC First Bank and AU Small Finance Bank in collusion with Haryana government public servants, was transferred to the CBI by the Haryana government for investigation. The fraud at IDFC First Bank was initially detected in February this year during a routine account closure and balance transfer process, revealing substantial discrepancies between recorded and actual balances.
Haryana’s Vigilance and Anti-Corruption Bureau filed an FIR initially, but the case was later handed over to the CBI by the state government. Additionally, the Enforcement Directorate (ED) commenced a parallel investigation. While IDFC First Bank asserts it repaid Rs 557 crore to the relevant state government departments, the inquiry remains ongoing.
