The Central Bureau of Investigation on Thursday carried out searches in at least seven locations across Chandigarh and Panchkula, as part of a probe into the scam involving the misappropriation of Haryana government funds through two private banks in AU Small Finance Bank and IDFC First Bank, the agency confirmed.
The searches were targeted at residential properties and jewellery showrooms, as CBI looks untangle a web of fradulent transactions at IDFC First Bank and AU Small Finance Bank. The case, which was handed to the CBI by the Haryana government in April, involves the alleged theft of Rs 590 crore.
Investigators, bank officials allegedly worked in tandem with government employees to divert state deposits into the account of shell entities. These companies, including Swastik Desh Projects and Capco Fintech Services, were used to move funds that were originally meant for government fixed deposits.
The CBI investigation has led to the arrest of 16 people so far, including former bank managers and senior state personnel. The Enforcement Directorate, India's financial crimes agency, is also conducting a separate money-laundering inequiry, having recently arrested two former IDFC First Bank employees, Ribhav Rishi and Abhay Kumar, who are account of floating shell companies in the names of their household staff to layer the siphoned money.
The scandal has already prompted significant administrative fallout. In April, the Haryana government suspended two high-ranking IAS officers, Ram Kumar Singh and Pardeep Kumar, shortly before the CBI officially assumed control of the investigation.
ALSO READ: Haryana Suspends Two IAS Officers Over Rs 590 Crore IDFC First Bank Scam, Refers Case To CBI
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