The Central Bureau of Investigation (CBI) on Thursday conducted coordinated searches at five locations in Chandigarh and Ludhiana as part of its investigation into the alleged ₹504 crore (approximately US$60 million) IDFC First Bank fraud. The searches were carried out in connection with the alleged misappropriation of funds from bank accounts belonging to Chandigarh Smart City Limited (CSCL) and the Municipal Corporation Chandigarh. During the operation, investigators seized digital storage devices, digital signatures, financial documents, property-related records, electronic devices, and other material considered relevant to the ongoing probe.
According to CBI officials, the searches covered the residences and business premises of suspected beneficiaries, the premises of a CSCL public servant, and several private entities linked to the investigation. The agency said the seized documents and electronic evidence would play a crucial role in tracing the movement of funds and identifying everyone involved in the alleged fraud.
The investigation was originally handled by the Haryana State Vigilance and Anti-Corruption Bureau before being transferred to the CBI. Preliminary findings suggest that the case extends beyond Chandigarh Smart City Limited and the Municipal Corporation and forms part of a larger banking fraud involving IDFC First Bank’s Sector-32 branch in Chandigarh.
Investigators allege that nearly ₹504 crore belonging to eight Haryana government departments was siphoned off through forged or non-existent fixed deposits (FDs) and fraudulent debit transactions. According to the agency, the funds were subsequently routed through multiple shell entities in an apparent attempt to conceal both their origin and the identities of the ultimate beneficiaries.
The CBI is examining banking records, financial documents, digital data, and electronic communications to reconstruct the complete money trail and determine how the alleged fraud was executed. Officials believe the analysis of these records will help establish the roles of individuals and entities involved in the preparation of fake fixed deposits, authorization of banking transactions, and processing of financial documentation.
Investigators have attached particular significance to the digital signatures and electronic storage devices recovered during the searches. These materials are expected to assist forensic experts in verifying the authenticity of electronic records, identifying users who authorized transactions, and recovering deleted or concealed digital evidence. The agency is also expected to examine emails, transaction logs, electronic documents, and other digital communications as part of its forensic analysis.
Sources said investigators are simultaneously reviewing financial records and property-related documents to determine whether the allegedly misappropriated funds were used to acquire real estate or other assets. The scope of the investigation continues to expand, and additional individuals may be questioned as further evidence emerges.
The CBI has already filed charge sheets in cases relating to Haryana government departments, Chandigarh Smart City Limited, and the Centre for Research and Industrial Staff Performance (CREST). Investigators are now examining possible links between these cases to establish whether they were part of a coordinated scheme involving common beneficiaries or interconnected financial transactions.
The agency has not announced any fresh arrests in connection with the latest searches. Officials said the forensic examination of the seized digital evidence and financial records is currently underway. Once the analysis is complete, investigators are expected to take further legal action based on the evidence collected, identify the full network of individuals involved, and establish the ultimate destination of the allegedly diverted public funds.
