The Central Bureau of Investigation is set to take over the probe into the alleged embezzlement of ₹590 crore from Haryana government accounts maintained with IDFC First Bank in Chandigarh, official sources said on Thursday.
The Haryana government had last month decided to hand over the investigation to the central agency. “We are in the process of taking over,” an official familiar with the development said, adding that a fresh FIR would soon be registered based on the case earlier filed by the Haryana State Vigilance and Anti-Corruption Bureau (SV&ACB).
According to IDFC First Bank, the alleged fraud was carried out by some of its employees in collusion with others, involving accounts held by various Haryana government departments.
Investigators suspect that funds meant to be deposited as fixed deposits were diverted for personal use by the accused. The SV&ACB has already arrested multiple individuals in connection with the case, including two former employees of the bank and several private persons linked to a partnership firm.
Preliminary findings indicate that substantial sums were routed through shell companies and small jewellery firms before being siphoned off under the guise of gold purchases and real estate investments.
Also read: Haryana govt seeks CBI probe into IDFC First, AU Bank scam
Officials said a significant amount of cash withdrawals has also been detected as part of the money trail, pointing to a complex network used to conceal the diversion of funds.
The role of a Chandigarh-based hotelier, allegedly involved in real estate projects across the Tricity region — Chandigarh, Mohali and Panchkula — is also under scrutiny as part of the ongoing investigation.
Meanwhile, IDFC First Bank has said it has already reimbursed 100 per cent of the principal and interest to the affected Haryana government departments, amounting to ₹583 crore.
In a regulatory filing, the bank stated that it remains committed to cooperating with authorities to pursue action against those involved and to recover its dues.
The takeover by the Central Bureau of Investigation is expected to intensify the probe, with a focus on uncovering the full extent of the fraud, identifying all beneficiaries, and tracing the flow of funds across multiple entities.
The case is likely to draw wider attention given the scale of the alleged diversion and the involvement of public funds, with central agencies now stepping in to conduct a comprehensive investigation.
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