Multiple Searches Conducted as Agency Expands Probe Into Alleged Misappropriation of Public Funds
The Central Bureau of Investigation (CBI) has carried out coordinated searches across Chandigarh and Ludhiana as part of its ongoing investigation into an alleged ₹504 crore government banking fraud involving accounts maintained by Chandigarh Smart City Ltd (CSCL) and the Municipal Corporation Chandigarh with IDFC First Bank.
The latest raids targeted suspected beneficiaries, properties linked to key accused, and private entities believed to have connections with the alleged diversion of government funds. Investigators recovered several documents and electronic records that are expected to assist in tracing the financial trail.
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Searches Conducted at Five Locations
According to the CBI, simultaneous searches were conducted at five locations, including:
- Residences of suspected beneficiaries.
- Business premises linked to the investigation.
- Properties associated with former accountant Anubhav Mishra.
- Offices of private entities under scrutiny.
Officials said the operation resulted in the seizure of substantial documentary and digital evidence relevant to the case.
Digital Evidence Seized for Forensic Examination
Among the materials recovered during the searches were:
- Digital storage devices.
- Digital signature credentials.
- Property-related documents.
- Financial records.
- Electronic devices.
- Other documentary evidence.
The agency stated that these materials will undergo forensic examination to reconstruct the movement of funds, identify additional beneficiaries, and establish the complete scope of the alleged conspiracy.
Investigation Originated From Haryana Vigilance Probe
The case was initially investigated by the Haryana State Vigilance and Anti-Corruption Bureau before being transferred to the CBI following a request from the state government.
Investigators believe the alleged fraud forms part of a broader banking scam linked to the Sector 32 branch of IDFC First Bank in Chandigarh.
Alleged Diversion of ₹504 Crore Through Fake Fixed Deposits
According to the investigation, nearly ₹504 crore belonging to eight Haryana government departments was allegedly siphoned off using forged and non-existent fixed deposits (FDs), along with fraudulent debit transactions.
The CBI alleges that the funds were subsequently routed through multiple shell companies and intermediary bank accounts in an effort to disguise their origin and conceal the identities of the ultimate beneficiaries.
Chargesheets Filed Against 17 Accused
The investigation has so far resulted in chargesheets against 17 accused, including:
- Six officials from IDFC First Bank and AU Small Finance Bank.
- Three Haryana government officials.
- Two companies.
- Six private individuals.
According to the agency, the accused allegedly played different roles in executing the banking fraud and facilitating the misappropriation of public money.
Two Chandigarh Cases Also Under Investigation
The CBI has additionally taken over two related cases connected to Chandigarh government entities.
These include:
- The Chandigarh Smart City Ltd (CSCL) and Municipal Corporation Chandigarh case.
- The Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST) case.
In the CSCL investigation, chargesheets have already been filed against:
- Five bank officials.
- One CSCL official.
- One private individual.
In the CREST case, chargesheets have been filed against:
- Five bank officials.
- Two CREST officials.
- Four private individuals.
- Two companies.
Investigation Continues
The CBI stated that the evidence recovered during the latest searches is expected to significantly assist in advancing the investigation.
Officials are continuing to examine the complete money trail, identify additional beneficiaries, and investigate the alleged misuse of the banking system for siphoning public funds.
The agency indicated that further action may follow if fresh evidence or additional suspects emerge during the course of the investigation.