CBI registers FIR in Rs 550 crore IDFC bank embezzlement case

New Delhi: The CBI has registered an FIR in the alleged embezzlement of Rs 550 crore from the Haryana government's accounts maintained with IDFC First Bank in Chandigarh after taking over the investigation in the matter, official sources said Thursday.

The Haryana government had transferred the probe to the central probe agency. The referral was sent to the agency on Wednesday by the Department of Personnel and Training, they said.

The CBI registered the FIR taking over the case earlier probed by the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB).

"The case pertains 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," the vigilance department of Haryana said while referring the case to the agency.

According to the police and ED allegations, Haryana government funds were supposed to be deposited by various departments of the state in the bank in FDs but were allegedly diverted by the accused for their personal purpose, the sources said.

Preliminary probe shows "huge" funds have been transferred to various shell (dummy) companies and minor jewellery entities and finally siphoned off under the guise of gold purchase and investment into real estate sector, the sources said.

They said a "significant" amount of cash withdrawals has also been noticed in this money trail.

Considering the magnitude, complexity, and gravity of the case, including its inter- state ramifications, the possibility of transnational diversion of proceeds of crime, involvement of multiple entities, including public servants and banking officials, and the significant impact on public finances and institutional integrity, the State Government is of the considered view that the investigation requires to be entrusted to a specialized central agency to ensure a comprehensive, impartial, and credible probe, the letter from the vigilance department said.

The SV & ACB has arrested a number of people in the case, of which two are ex-IDFC First Bank employees and the rest are private persons who own a partnership firm.

Role of a Chandigarh-based hotelier, involved in construction of real estate projects in the Tricity (Chandigarh-Mohali-Panchkula), and AU Small Finance Bank is also under the scanner.

IDFC First Bank had said it has paid out 100 per cent of the principal and interest to the relevant departments of the Haryana government, which works out to Rs 583 crore.

"The bank remains committed to working together with the relevant Haryana Government departments and the law enforcement agencies to pursue actions against the perpetrators of the fraud and looks forward to recovering our dues," IDFC First Bank said in a regulatory filing.