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

The Central Bureau of Investigation (CBI) has conducted searches at six locations across Chandigarh, Panchkula and Delhi-NCR as part of its probe into an alleged Rs 661 crore fraud involving the diversion of government funds from departments of the Haryana government and the Chandigarh administration.

The raids, carried out on Friday, targeted premises linked to senior Haryana cadre public servants as well as Noida-based Vipam Consultancy Pvt Ltd and its director, the agency said on Sunday.

According to the CBI, the alleged fraud relates to government funds parked with IDFC First Bank and AU Finance Bank that were subsequently siphoned off through a network involving public servants and bank officials.

Which departments were affected?

The agency said the alleged fraud impacted eight departments of the Haryana government and two departments of the Chandigarh administration — the Municipal Corporation Chandigarh and the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST).

The investigation stems from one case taken over from the Haryana State Vigilance and Anti-Corruption Bureau and two cases originally registered by the Economic Offences Wing police station in Chandigarh.

 What has the CBI alleged?

According to the agency, evidence collected during the investigation suggests that public servants colluded with bank officials to facilitate the opening of accounts, transfer of government funds and their subsequent diversion.

"During investigation evidence has surfaced suggesting that the public servants had colluded with bank officials and had facilitated in opening of accounts, transfer of funds, and subsequent diversion thereof," the CBI said.

The agency further alleged that the officials concerned received undue benefits for facilitating the transactions and for failing to act against the irregularities.

Consultancy firm under scanner

The CBI also alleged that Noida-based Vipam Consultancy Pvt Ltd received proceeds of crime in its bank account and that the money was later transferred to the personal account of its director.

Searches led to the seizure of documents, digital devices, property-related records, and other materials considered relevant to the investigation.

"Incriminating documents, digital devices, property documents, and other relevant material were seized during the search operations," the agency said.

Chargesheet already filed

The CBI said it has already filed its first chargesheet before a special court in Panchkula.

According to the agency, the chargesheet details the alleged role of public servants from the Haryana Power Generation Corporation Ltd and the Haryana School Shiksha Pariyojna Parishad. It also outlines the alleged modus operandi used to siphon government funds parked with IDFC First Bank and AU Finance Bank.