Chandigarh: In a major development in a high-value financial fraud investigation, the Central Bureau of Investigation (CBI) has arrested the former Chief Executive Officer of the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST), Navneet Kumar Srivastava, in connection with an alleged ₹83 crore fraud involving the diversion of public funds held in accounts with IDFC First Bank.
Custodial Interrogations and Multi-Layered Siphoning Substrates
Officials stated that the arrest marks a significant escalation in the ongoing probe into alleged misuse of government-linked funds, with investigators suspecting a structured financial network involving shell companies, layered transactions, and multiple banking channels. The accused was produced before a special CBI court and has been remanded to custody for further interrogation.
According to investigators, the case involves the alleged siphoning of funds from multiple CREST accounts, which were routed through several entities before being diverted for unauthorized purposes. Preliminary scrutiny has identified around 300 suspicious transactions during account reconciliation, raising concerns over long-term financial irregularities.
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Account Reconciliation Audits and Shell Entity Layering Mechanisms
The investigation further suggests that the diverted funds were allegedly transferred into shell companies and then layered through multiple accounts to obscure their origin. Officials believe the financial trail indicates a coordinated mechanism designed to conceal the movement of public money across entities.
Authorities also noted that the estimated financial loss includes both principal amounts and accrued interest, significantly increasing the overall impact of the alleged scam. Investigators have flagged possible involvement of private entities and individuals linked to the financial transactions under review.
Regional Banking Channels and Backdated Document Forgeries
The case is now being examined as part of a broader probe into multiple financial irregularities involving government funds routed through banking channels in Chandigarh and surrounding regions. Similar patterns of alleged fund diversion using shell companies and repeated layering of transactions have been observed in related cases.
Earlier in the investigation, individuals associated with project execution and accounting operations were arrested and subsequently chargesheeted. A detailed chargesheet has already been filed against multiple accused, including bank officials, private entities, and company representatives allegedly involved in facilitating or processing suspicious transactions.
Digital Ledger Falsifications and Administrative Oversight Lapses
Investigators have also found indications that forged bank statements and manipulated financial records were allegedly used to delay detection of the fraud. In certain instances, communications were reportedly sent through official email systems, allegedly helping to authenticate falsified documents, according to sources familiar with the investigation.
The CBI has expanded its inquiry to examine internal decision-making processes, including approvals related to fund transfers, banking operations, and administrative oversight during the period under investigation. Officials are also assessing whether lapses in monitoring mechanisms allowed the alleged diversion to continue over an extended period.
Ultimate Beneficiary Trackings and Forensic Reconstructions
The arrest is being viewed as a key breakthrough in a case that investigators believe may be part of a wider network of financial irregularities involving multiple institutions and interconnected entities. Efforts are now focused on identifying the ultimate beneficiaries of the diverted funds and mapping the complete financial trail.
Financial crime experts note that such cases typically involve complex layering of transactions across multiple accounts and entities, making detection difficult without detailed forensic analysis. The ongoing investigation is expected to rely heavily on digital financial records, banking data, and transaction mapping to reconstruct the money flow.
Officials have indicated that further arrests and developments are likely as the investigation progresses, with agencies working to establish accountability at multiple administrative and operational levels.
The CBI has reiterated that the probe remains ongoing and that all individuals found involved in the alleged fraud will be subjected to legal action as per established procedures.
