CBI Opens Investigation into Haryana Government's Rs 550 Crore Embezzlement Case
The Central Bureau of Investigation (CBI) has registered a First Information Report (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.
Background of the Case
The Haryana government had transferred the probe to the central probe agency, with the Department of Personnel and Training sending a referral to the agency on Wednesday.
Allegations and Charges
- Fraudulent Banking Operations: The CBI has alleged that fictitious transactions were undertaken in a systematic manner to siphon off government funds into the accounts of shell entities.
- Shell Companies and Individuals: The entities involved include Swastik Desh Project, SRR Planning Gurus Pvt. Ltd., Cap Co Fintech Services, R.S. Traders, and other associated firms/individuals.
- Diversion of Funds: The accused allegedly diverted Haryana government funds from Fixed Deposits (FDs) for their personal purposes.
- Money Trail: Preliminary probe shows huge funds have been transferred to various shell companies and minor jewelry entities, and finally siphoned off under the guise of gold purchase and investment into the real estate sector.
- Significant Cash Withdrawals: A significant amount of cash withdrawals has been noticed in this money trail.
Investigation and Arrests
The Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB) has arrested a number of people in the case, including two ex-IDFC First Bank employees and private persons who own a partnership firm.
Entities Under Scanner
- Chandigarh-based Hotelier: Involved in the construction of real estate projects in the Tricity (Chandigarh-Mohali-Panchkula).
- AU Small Finance Bank: Role of the bank is also under the scanner.
Bank's Response
IDFC First Bank has said it has paid out 100% 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 its dues.