The CBI is poised to investigate a massive ₹590 crore embezzlement case involving Haryana government funds and IDFC First Bank accounts, uncovering a complex web of shell companies and real estate diversions.
Key Points
- CBI is taking over the investigation of a ₹590 crore embezzlement from Haryana government accounts at IDFC First Bank.
- The alleged fraud involved diversion of Haryana government funds intended for fixed deposits into shell companies and real estate.
- Former IDFC First Bank employees and private individuals have been arrested in connection with the embezzlement.
- IDFC First Bank has repaid ₹583 crore to the Haryana government departments affected by the fraud.
- The investigation is focusing on the money trail, including cash withdrawals and the role of a Chandigarh-based hotelier.
The CBI is all set to take over the case of embezzlement of ₹590 crore from the Haryana government's accounts maintained with IDFC First Bank in Chandigarh, official sources said Thursday.
The Haryana government had decided last month to hand over the probe to the central agency, they said.
"We are in the process of taking over," an official in the know of the development said, adding that an FIR will be registered soon on the basis of the case registered by the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB) FIR.
According to the IDFC First Bank, the alleged ₹590-crore fraud was committed by its employees and others in accounts held by the Haryana government with the private sector lender.
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.
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.
Details of the Alleged Fraud
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.
Role of a Chandigarh-based hotelier, involved in construction of real estate projects in the Tricity (Chandigarh-Mohali-Panchkula), is also under the scanner.
IDFC First Bank's Response
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 ₹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.
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