Chandigarh: In a major development in the alleged ₹590-crore embezzlement case linked to Haryana government funds, the Enforcement Directorate (ED) has conducted raids at 19 locations in Chandigarh and nearby areas. The action comes after the recent arrest of two bank officials associated with the case. Authorities say the searches are aimed at tracing the money trail and identifying assets acquired through the alleged fraud.
According to officials familiar with the investigation, the case is related to the Chandigarh branch of IDFC First Bank, where large amounts of money belonging to various Haryana government departments were reportedly mishandled. The funds had been deposited in the bank with the intention of placing them in fixed deposits (FDs). However, investigators suspect that instead of investing the amount in FDs, the accused diverted the money for unauthorized and personal use.
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Earlier this week, the Anti-Corruption Bureau (ACB) arrested Priyanka, the dealing head of the bank’s Sector-32 branch, and Anuj Kaushal, a former dealing head. The arrests followed detailed questioning and preliminary findings that indicated possible irregularities in handling the government funds. Officials believe that the two employees played a key role in processing transactions and verifying documents related to the deposits.
Sources in the investigating agencies said the ED initiated the search operations after gathering evidence during the preliminary probe and interrogations. The agency is now examining documents, electronic records and financial data seized during the raids. The objective of the operation is to establish the complete chain of events and determine how the funds were allegedly diverted from the original purpose.
Investigators have revealed that several Haryana government agencies had deposited approximately ₹590 crore in the bank. The money was supposed to be kept safely as fixed deposits, which are typically used by government departments for secure investment and interest earnings. However, the probe suggests that instead of creating legitimate FDs, the accused may have manipulated banking procedures and redirected the funds elsewhere.
Officials believe the money might have been transferred through multiple accounts or financial channels to conceal its origin. Therefore, identifying the money trail has become a crucial part of the investigation. By conducting simultaneous searches at multiple locations, the ED hopes to uncover documents and digital evidence that could reveal where the funds were moved and who benefited from the alleged diversion.
During the ongoing raids, ED teams have been examining bank records, computers, mobile devices and other digital storage systems. Financial statements and transaction histories are also being reviewed to understand the movement of the funds. Officials stated that the search operations could help identify additional individuals involved in the fraud, including possible collaborators within or outside the banking system.
The case has drawn significant attention because it involves public funds belonging to government departments. Authorities are therefore treating the matter with seriousness, as misuse of such funds could have a direct impact on government operations and public welfare programmes.
Meanwhile, the ACB continues to question three officers from two government departments in connection with the case. Investigators are trying to determine whether the officials had any role in approving or monitoring the deposits made with the bank. Their statements may help clarify whether procedural lapses or deliberate actions contributed to the alleged embezzlement.
Officials involved in the investigation indicated that further arrests cannot be ruled out as the probe progresses. If evidence emerges against additional individuals, the agencies may expand the scope of the case to include other suspects or beneficiaries linked to the transactions.
The ED has stated that legal action will be taken based on the documents and evidence collected during the search operations. The agency is also focusing on identifying properties or assets that may have been acquired using the alleged proceeds of crime.
At present, the investigation remains ongoing, and authorities are continuing their efforts to gather evidence, track financial transactions and determine the full extent of the alleged ₹590-crore fraud involving IDFC First Bank and funds deposited by Haryana government agencies.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
