Chandigarh: The Central Bureau of Investigation (CBI) conducted searches at six premises in connection with the ongoing investigation into a Rs 661 crore misappropriation fraud involving IDFC First Bank and AU Small Finance Bank, officials said on Sunday.

Fraud Linked to Haryana Government and Chandigarh Departments

These searches, conducted on Saturday, pertained to the alleged siphoning of government funds from eight departments of the Haryana government and two Chandigarh institutions — the Municipal Corporation Chandigarh and CREST Chandigarh.

Officials said the raids were carried out at premises in Chandigarh, Panchkula and Delhi-NCR, including residences of senior Haryana cadre public servants as well as the offices of Vipam Consultancy Pvt. Ltd. and its director.

The searches were conducted as part of an investigation into alleged irregularities and the receipt of proceeds of crime linked to the fraud.

Public Servants, Bank Officials Allegedly Worked in Collusion

According to the CBI, the investigation has revealed that certain public servants allegedly colluded with bank officials to facilitate the opening of accounts, transfer of government funds and their subsequent diversion.

“It is alleged that they have received undue advantages for their facilitation and inaction,” officials said.

Investigators further stated that Vipam Consultancy Pvt. Ltd. was found to have received proceeds of the crime into company accounts, which were later transferred to the director’s personal account.

During the searches, the agency seized incriminating documents, digital devices, property-related papers and other materials considered relevant to the investigation.

CBI Files First Chargesheet, Further Action Planned

The CBI had earlier taken over one case from Haryana State Vigilance and Anti-Corruption Bureau and two cases originally registered at the Economic Offences Police Station in Chandigarh.

According to officials, the cases involve allegations of criminal conspiracy, misappropriation of public funds and related offences committed with the involvement of bank officials and government employees. The fraud allegedly affected eight Haryana government departments and two Chandigarh institutions, resulting in a loss of Rs 661 crore.

Following the initial investigation, the CBI has already filed its first chargesheet before the CBI Court in Panchkula. The chargesheet details the alleged role of officials from two departments — Haryana Power Generation Corporation Limited and Haryana School Shiksha Pariyojna Parishad.

The chargesheet also outlines the alleged modus operandi used to siphon off government funds parked with IDFC First Bank and AU Finance Bank.

Investigation Continues Across Multiple Cases

The agency said investigations in all three cases are continuing and further action will be taken against all individuals found involved.

“An additional chargesheet will be filed soon. CBI remains firmly committed to the thorough and impartial investigation of financial crimes and misuse of public funds,” the agency said.