The Central Bureau of Investigation (CBI) has taken over the probe into the alleged misappropriation of more than ₹550 crore of Haryana government funds from IDFC First Bank and AU Small Finance Bank.
The federal agency registered a regular case (RC), equivalent to an FIR, replicating the first information report lodged by the Haryana Anti Corruption Bureau (ACB) on February 23.
“A team of CBI officers met the ACB officials on Thursday to get acquainted with the aspects of the banking scam and pick up documents of evidentiary value,” a senior Haryana government official aware to the development said on condition of anonymity.
The CBI RC, which has been seen by HT, states: “The case involved serious allegations of misappropriation of government funds and a large scale, organised, and multi-layered fraud pertaining to fraudulent banking operations and fictitious transactions allegedly undertaken in a systematic manner to siphon off government funds into the accounts of shell entities, including Swastik Desh Project, SRR Planning Gurus Pvt. Ltd., Cap Co Fintech Services, R.S. Traders and other associated firms/individuals, resulting in a substantial loss to the public exchequer, estimated to exceed ₹550 crore.”
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Haryana officials added that a second case registered by ACB in connection with the Panchkula Municipal Corporation banking fraud may also be handed over to CBI. The ₹150–160 crore fraud involves the liquidation of the corporation’s fixed deposits in Kotak Mahindra Bank using forged documents and fictitious accounts.
Kotak Mahindra Bank on March 25 said it has begun reconciling the municipal corporation’s fixed deposits and linked accounts, maintaining that all processes and transactions adhered to due norms. It added that a significant portion has already been reconciled, with the remaining process underway.
In the first case, IDFC First Bank said in a February 24 statement that it has paid 100% of the principal and interest — amounting to ₹583 crore – – to the relevant Haryana government departments.
AU Small Finance Bank said on February 22 that there was no indication of any financial impact or fraudulent activity affecting the bank, adding that certain employees had been placed off duty to ensure a fair and transparent review.
CBI’s RC comes amidst an administrative churn in the state, with the government transferring four IAS officers on Wednesday night. The officers, who had been given key postings on March 19, were moved to less significant roles within three weeks as part of a broader reshuffle involving 15 IAS officers. In a related move, two IAS officers promoted from the state civil services were placed under suspension. It wasn’t immediately clear whether any of the transfers and suspensions had to do with either of the cases detailed above.
