The CBI has arrested an Indian Revenue Service officer and an SFIO inspector over alleged bribery linked to the DHFL fraud case.
The 2017-batch Indian Revenue Service (IRS) officer, posted with the Serious Fraud Investigation Office (SFIO), allegedly demanded money from a private company executive in exchange for settling a case involving a bank fraud investigation. The officer also allegedly threatened the executive with arrest and prosecution if the payment was not made.
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How Did the CBI Make the Arrests?
The Central Bureau of Investigation (CBI) conducted a trap operation in Chennai after receiving information about suspected corrupt practices.
An SFIO inspector was allegedly caught accepting ₹20 lakh, described as the first instalment of the bribe. Investigators subsequently established the suspected involvement of the IRS officer, who was also arrested and taken for questioning.
The CBI has registered a First Information Report under relevant provisions of the Prevention of Corruption Act.
How Is the Case Connected to DHFL?
The alleged bribery demand relates to an SFIO investigation involving Dewan Housing Finance Corporation Limited (DHFL). DHFL and its former promoters, Kapil and Dheeraj Wadhawan, face accusations of defrauding a consortium of 17 banks led by Union Bank of India of ₹34,615 crore.
Investigators allege that loan funds were diverted through shell companies, while fictitious loans and falsified accounts were used to conceal the transactions. The government ordered an SFIO investigation into DHFL’s affairs in 2019.
The arrested officer allegedly offered to settle the matter in exchange for payment, while threatening legal action if the demand was refused.
What Is the CBI Investigating Now?
Investigators are examining whether the officer previously received illegal payments from other individuals or companies. The ₹20 lakh allegedly accepted during the operation has been seized, along with several electronic devices.
Authorities are examining call detail records and communications involving the officer and company executives to establish the circumstances surrounding the alleged bribery. Investigators are also assessing whether other companies facing SFIO investigations were subjected to similar demands.
Why Is the SFIO’s Role Significant?
The SFIO operates under the Ministry of Corporate Affairs and investigates serious corporate fraud involving complex financial transactions. Its multidisciplinary teams include specialists in forensic auditing, law, banking, taxation and information technology.
The allegations concern officials associated with an agency responsible for investigating significant corporate financial misconduct.
The investigation remains ongoing, and the suspected bribery and any wider involvement have yet to be established through legal proceedings.
The arrests highlight the importance of accountability within agencies handling major financial fraud investigations. The examination of seized money, electronic devices and communications will be central to determining whether the alleged demand was an isolated incident or part of wider misconduct.
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