Chandigarh: The police have constituted an eight-member Special Investigation Team (SIT) to probe alleged multi-crore fund diversion from government accounts in Chandigarh and Haryana. The SIT has been tasked with conducting a comprehensive investigation into matters linked to IDFC First Bank to trace the complete trail of diverted funds.
Sources revealed that the case came to light after Chandigarh Smart City Limited (CSCL) filed a complaint highlighting financial irregularities. The complaint stated that suspicious transactions were detected involving fixed deposits worth approximately ₹116.84 crore in government accounts. Following this, the UT police set up the SIT to investigate the allegations thoroughly.
Focus on IDFC First Bank Links and Money Trail
The SIT’s mandate includes reviewing banking transactions, identifying the roles of accused individuals, and tracing the final utilization of diverted funds. This also involves scrutinizing investments made in real estate and other assets. Police officials have confirmed that custody remand of the alleged former bank employees will be sought on Monday to further the investigation.
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Role of Former Bank Employees Under Scanner
The accused include former employees of IDFC First Bank, who are alleged to have assisted in diverting government funds. Reports indicate that multiple shell companies and layered transactions were used to siphon off the money. Some of the diverted funds were allegedly transferred directly to the accounts of the accused and their family members.
Former bank employees Ribhav Rishi and Abhay Kumar are under close observation. Rishi resigned from the bank in June 2025. His alleged activities include diverting government funds through shell firms, with some amounts reportedly credited to his and his wife Divya Arora’s accounts.
Shell Firms and Layered Transactions Emerge
Investigators are focused on uncovering the entire money trail, including transactions routed through private firms and accounts linked to the accused. The SIT is working with financial experts and forensic teams to analyze bank statements and digital evidence recovered during the probe.
Custody Remand Seen as Crucial to Investigation
Police stated that the SIT has been entrusted with a broad investigative mandate to uncover fund diversion at every level. This includes reviewing government account transactions, verifying the roles of accused individuals, and tracing the ultimate destination of diverted funds.
During the investigation, the SIT will also examine potential forged documents and layered transactions. Officials emphasized that obtaining custody remand is critical to conduct detailed questioning and to track the complete flow of diverted funds.
Concerns Over Systemic Risks and Public Funds
Experts warn that such large-scale financial scams can undermine the credibility of the financial system and government projects. Without timely and precise investigation, there is a significant risk of continued misuse of public funds.
The SIT’s swift action in Chandigarh and Haryana sends a clear signal that the administration is acting decisively and transparently against financial fraud. The investigation is ongoing, and authorities are likely to initiate stringent legal action against those found guilty.
