7 June: The Central Bureau of Investigation (CBI) has carried out searches at six locations across Chandigarh, Panchkula, and the Delhi-NCR region as part of its ongoing investigation into an alleged ₹661 crore fraud involving funds parked with IDFC First Bank and AU Small Finance Bank.
According to officials, the case pertains to the alleged diversion and misappropriation of government funds belonging to multiple departments of the Haryana Government and the Chandigarh Administration. The searches were conducted at premises linked to senior public servants and a Noida-based consultancy firm as investigators expanded the probe into the suspected financial irregularities.
The investigating agency has alleged that certain public officials, in collusion with bank functionaries and private entities, facilitated the opening of accounts, transfer of funds, and subsequent diversion of government money through a network of transactions. Investigators are examining whether undue benefits were received in exchange for enabling these transactions and overlooking alleged irregularities.
During the search operations, the CBI reportedly seized documents, digital devices, property-related records, and other materials that could assist in uncovering the flow of funds and identifying additional individuals involved in the case. Officials believe the recovered evidence may help establish the alleged modus operandi used to siphon off public money.
The alleged fraud is said to have impacted several Haryana government departments as well as Chandigarh-based public institutions. Investigators are examining how public funds were transferred and whether internal controls and oversight mechanisms were bypassed in the process.
The case was taken over by the CBI from state and local investigative agencies after preliminary inquiries indicated a large-scale financial conspiracy involving government funds. Since assuming charge of the investigation, the agency has conducted multiple raids, made arrests, and filed chargesheets against several accused persons linked to the case.
Officials said the investigation remains active and additional chargesheets may be filed as new evidence emerges. The agency is also examining the role of other individuals and entities suspected of benefiting from the alleged diversion of funds.
Financial fraud cases involving public funds often attract heightened scrutiny because of their potential impact on governance, public services, and taxpayer resources. Experts note that strong monitoring mechanisms, transparent banking procedures, and timely audits are critical for preventing such incidents.
The latest searches indicate that investigators are continuing to widen the scope of the probe in an effort to trace the complete money trail and establish accountability for the alleged fraud.
