CBI arrests former IDFC First Bank, AU Small Finance Bank officials in Haryana FD fraud case

The Central Bureau of Investigation (CBI) has arrested two former bank officials in connection with the alleged misappropriation of funds belonging to Haryana government departments through irregular investments in fixed deposits and fraudulent banking transactions.

The agency said it has arrested Shamim Dar, then Area Head of IDFC First Bank, and Charanjeet Singh Randhawa, then Branch Manager of AU Small Finance Bank's Mohali branch, for their alleged role in facilitating the diversion of public funds.

According to the CBI, the accused allegedly helped open bank accounts that were used to route fraudulent transactions involving surplus funds of Haryana government departments. These funds, meant to be invested in fixed deposits, were allegedly diverted through forged or non-existent Fixed Deposit (FD) receipts and unauthorised debit notes.

MUST READ: CBI searches 6 locations in Rs 661 crore bank fraud probe. The case explained

The investigation found that both officials, in their respective capacities, played "incriminating roles" in facilitating the opening of bank accounts and enabling transactions through which public money was siphoned off. The agency said it has collected evidence against the two officials during the course of its investigation.

Both accused have been arrested and will be produced before the Special CBI Court in Panchkula.

The case relates to an alleged fraud involving Sector 32 IDFC First Bank branch in Chandigarh, where surplus funds belonging to Haryana government departments were allegedly diverted. According to the CBI, approximately ₹504 crore was siphoned off through forged documents and fraudulent financial transactions.

MUST READ: Funds meant for FDs diverted: CBI registers FIR in Rs 550 crore IDFC First Bank fraud case

The agency said it has already filed a chargesheet in the case against 17 accused, including six bank officials from IDFC First Bank and AU Small Finance Bank, three Haryana government officials, two companies, and six private individuals.

Apart from the Haryana government funds case, the CBI said it has also taken over investigations into two other cases linked to the Chandigarh Union Territory. These relate to alleged irregularities involving the Chandigarh Smart City Limited (CSCL) and the Chandigarh Municipal Corporation.

The agency has filed chargesheets in both matters. In the CSCL case, the chargesheet names five bankers, one CSCL official and one private individual. In the Chandigarh Municipal Corporation-linked case, the CBI has chargesheeted two officials of the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST), four private individuals and two companies.

The CBI said it remains committed to identifying all those responsible for the alleged fraud and ensuring that the trail of misappropriated public funds is fully traced as the investigation progresses.

MUST READ: HDFC Bank, SBI, ICICI Bank, Bank of Baroda: Top baking stocks picks; check targets & more