Quick Read
- Authorities have arrested 11 individuals, including six bank employees, in connection with a Rs 590 crore fraud.
- The scam involved the use of shell companies and forged documents to siphon funds from eight government departments.
- CREST has confirmed it suffered no financial loss and has moved its funds to Punjab National Bank as a precaution.
PANCHKULA (Azat TV) – The Haryana State Vigilance and Anti-Corruption Bureau (SV&ACB) is currently conducting a sprawling investigation into a Rs 590 crore financial fraud involving IDFC First Bank and AU Small Finance Bank. Authorities have arrested 11 individuals—including six bank employees, four private citizens, and one government official—as investigators work to unravel a complex web of forged documents and unauthorized transfers.
Tracing the Flow of Illicit Funds
The investigation centers on the systematic diversion of government funds through the creation of shell companies and the manipulation of bank records. According to the SV&ACB, the accused allegedly utilized forged debit memos and fabricated bank statements to move money from departmental accounts into private entities, including firms identified as RS Traders, Cap Co Fintech Services, SRR Planning Gurus Pvt. Ltd., and Swastik Desh Project. Officials have since requested the freezing of debits on more than 100 bank accounts linked to the scheme.
Scope of the SV&ACB and Enforcement Directorate Probe
The probe has expanded significantly since a case was registered on February 23 at the SV&ACB police station in Panchkula. Investigators have conducted raids at 16 locations across Chandigarh, Haryana, and Punjab, seizing electronic devices, property documents, and luxury vehicles, including three Toyota Fortuners, two Innovas, and one Mercedes. The Enforcement Directorate is conducting a parallel investigation into the money trail, while cyber forensic experts analyze seized laptops and mobile phones to map the full extent of the financial irregularities.
Institutional Responses and Account Reconciliation
As the investigation continues, various government entities are scrambling to reconcile their financial records. The Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST) has publicly denied holding any fixed deposits affected by the scam, confirming that its internal audit and account reconciliation up to November 2025 showed no financial loss. Following an advisory from the Finance Department, CREST successfully transferred its funds from IDFC First Bank to Punjab National Bank on February 27. A committee appointed by the Chandigarh Administration is now reviewing whether procedural lapses occurred within the affected departments.
The scale of the operation, involving both private financial institutions and multiple government departments, suggests a high level of coordination that necessitates a rigorous forensic audit to determine how such large-scale unauthorized transfers remained undetected for an extended period.