Kashmir Impulse Desk

New Delhi, April 9 

India’s federal investigative agency, the Central Bureau of Investigation (CBI), has registered a criminal case in connection with the alleged embezzlement of roughly Rs 550 crore from Haryana government accounts held at IDFC First Bank, officials said on Thursday.

The case was transferred to the CBI after a preliminary investigation by the State Vigilance Organisation and Anti-Corruption Bureau. 

Authorities cited the scale and complexity of the alleged fraud, as well as its potential cross-state and international dimensions, in seeking a central probe.

According to officials familiar with the inquiry, the scheme involved a series of fraudulent transactions in which public funds, intended for fixed deposits, were diverted into accounts linked to shell companies and private entities. 

Investigators suspect that the money was then routed through a network of businesses including firms with little or no legitimate activity and ultimately siphoned off through purported investments in gold purchases and real estate.

Preliminary findings suggest that large sums were withdrawn in cash at various stages of the transactions, complicating efforts to trace the full money trail. 

Authorities are examining the roles of multiple actors, including bank employees, private businessmen and possible public officials.

Several arrests have already been made by state investigators, including former employees of the bank and individuals associated with a partnership firm. 

The role of other financial institutions and business figures remains under scrutiny.

In a regulatory filing, IDFC First Bank said it had reimbursed the Haryana government in full, including both principal and interest, amounting to approximately Rs 583 crore. 

The bank said that it was cooperating with investigators and pursuing recovery from those responsible.

Officials said the investigation would seek to establish the extent of institutional lapses and determine whether proceeds of the alleged fraud were routed beyond India’s borders.