IDFC First Bank scam: CBI conducts searches at multiple locations in Chandigarh and Ludhiana

New Delhi: The Central Bureau of Investigation (CBI) has carried out searches at several locations in Chandigarh and Ludhiana as part of its probe into the alleged Rs 657 crore misappropriation of funds from IDFC First Bank accounts belonging to Chandigarh Smart City Ltd. (CSCL) and the Municipal Corporation Chandigarh, officials said on Thursday.

"The searches were conducted at five locations, including residential premises, business establishments of suspected beneficiaries of the defrauded funds belonging to Municipal Corporation Chandigarh and Chandigarh Smart City Limited (CSCL), public servant Anubhav Mishra of CSCL and private entities connected with the investigation," a CBI spokesperson said in a statement.

According to the agency, the raids led to the seizure of several incriminating materials.

"These include digital evidence like storage drives, digital signatures, property related documents, financial records, multiple electronic devices and other documents relevant to the investigation," it said.

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The CBI took over the case from the State Vigilance and Anti-Corruption Bureau, Haryana, following a request from the state government.

Investigators allege that the fraud was carried out at the Sector-32 branch of IDFC First Bank in Chandigarh, where government funds were siphoned off using forged or fictitious fixed deposits and fraudulent debit transactions before being routed through shell entities.

The alleged scam is said to have caused losses of Rs 504 crore to the Haryana government and Rs 153 crore to the Chandigarh administration, according to the CBI spokesperson.

The agency has already filed charge sheets in multiple cases linked to the alleged fraud and has arrested three senior IAS officers as part of the ongoing investigation. (PTI)