IDFC First Bank ‘fraud’: CBI raids Haryana IAS officers in Rs 645-cr embezzlement case

4 min readChandigarhUpdated: Jun 7, 2026 09:01 AM IST

The CBI is also examining allegations that funds belonging to Chandigarh Smart City Limited and CREST, deposited with IDFC First Bank, were diverted through a network of shell companies. (fILE Photo)

The Central Bureau of Investigation (CBI) on Saturday conducted searches at the residences of four IAS officers in Chandigarh and Panchkula as part of its probe into the alleged embezzlement of Rs 645 crore from Haryana government accounts maintained with IDFC First Bank, it has been learnt.

The searches were carried out at multiple locations linked to the Haryana cadre officers as the agency widened its investigation into the alleged diversion of public funds, sources in the central agency said. The CBI was yet to issue any official statement on the searches till late Saturday evening.

Sources said the searches are linked to the agency’s efforts to examine the role of the officials who were associated with the Haryana Power Generation Corporation Limited (HPGCL) during the period under investigation. Documents, digital devices and financial records were reportedly seized during the searches and are being scrutinised by investigators.

The development comes months after the Haryana government granted sanction under Section 17A of the Prevention of Corruption Act to the CBI to examine the role of certain senior bureaucrats in connection with the case. The provision mandates prior approval before investigating decisions taken by public servants in the discharge of official duties.

The present investigation stems from an FIR originally registered by the State Vigilance and Anti-Corruption Bureau (ACB), Panchkula, and later taken over by the CBI. The Economic Offences Wing of the CBI subsequently re-registered the case under provisions of the Prevention of Corruption Act and relevant sections of the Bharatiya Nyaya Sanhita (BNS).

The raids come days after the Enforcement Directorate, which is carrying out a parallel investigation into money laundering allegations, made its third arrest.

The ED arrested real estate businessman Vikram Wadhwa on May 29 under the Prevention of Money Laundering Act (PMLA), alleging that he received more than Rs 70 crore in proceeds of crime and played a key role in the generation, layering and concealment of the laundered funds.

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The ED had, in a statement, said that its investigation has so far revealed the “embezzlement of public funds amounting to Rs 645 crore from the bank accounts of Haryana government, Chandigarh UT Administration and two private schools based in Chandigarh and Panchkula maintained with IDFC First Bank”.

The agency alleged that Wadhwa acted in connivance with co-accused Ribhav Rishi, Abhay Kumar, bank officials and government officials in siphoning off the funds. “Vikram Wadhwa has been instrumental in generation, layering and concealment of proceeds of crime,” the ED said in a statement.

The searches also come days after the arrest of Amit Dewan, former finance director of Haryana Power Generation Corporation Limited (HPGCL), in connection with the Rs 83-crore alleged financial fraud involving the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST)’s accounts at IDFC First Bank’s Sector 32 branch. Dewan had earlier been arrested on March 18 in the Panchkula bank fraud case.

According to CBI sources, Dewan and the main accused in the case allegedly floated shell companies and carried out suspicious transactions exceeding Rs 50 crore during Dewan’s tenure at HPGCL. CBI sleuths suspect that government funds parked in fixed deposits were diverted through shell entities before being routed into real estate investments.

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The agency is also examining allegations that funds belonging to Chandigarh Smart City Limited and CREST, deposited with IDFC First Bank, were diverted through a network of shell companies. Officials claimed that two delivery workers were allegedly engaged to transport cash and documents linked to the transactions, and efforts are underway to trace and question them.

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Jagpreet Singh Sandhu is a Senior Correspondent at The Indian Express, based in Chandigarh. He is a veteran reporter with over a decade of experience, specializing in legal, crime, and environmental reporting across the tri-city area (Chandigarh, Mohali, and Panchkula).

Professional Background

Core Beat: He primarily covers the Punjab and Haryana High Court, District Courts, CBI Courts, and Consumer Commissions. His legal reporting is known for breaking down complex judgments and tracking long-standing criminal cases.

Environmental Reporting: Jagpreet has become a key voice in reporting on the deteriorating air quality and weather patterns in the Punjab-Haryana region.

Crime & Technology: He frequently reports on cybercrime, digital arrest scams, and the intersection of technology and law enforcement, such as the development of citizen-centric policing apps.

Recent Notable Articles (Late 2025)

His late 2025 coverage has focused on significant judicial verdicts, major financial scams, and public health concerns:

1. Legal & CBI Court Verdicts

"12 years on, CBI court acquits Haryana judge, parents in wife’s death case" (Dec 17, 2025): Detailed coverage of the acquittal of a judicial officer in a high-profile dowry death case from 2013.

"‘Wicked & evil mind’: Court gives man 30-year term for kidnapping, sexually assaulting 8-year-old" (Dec 16, 2025): A report on a stern judgment from a Chandigarh district court in a POCSO case.

"Man acquitted in rape case after victim found ‘very happy’ in wedding reception" (Dec 9, 2025): Covering a unique legal observation regarding consensual relationships and age verification.

2. Investigative & Scams

"CBI registers FIR in Rs 1.14-cr Patient Welfare Grant scam at PGIMER" (Dec 19, 2025): An exposé on how funds meant for poor patients were siphoned off through forged documents and a photocopy shop inside the PGIMER campus.

"Month-long torture, Rs 85 lakh transfers: How ‘Innocence Certificate’ led to a ‘digital arrest’ of an elderly couple" (Dec 12, 2025): Detailing a sophisticated cyber fraud targeting senior citizens in Chandigarh.

3. Environment & Public Safety

"Panchkula air turns ‘very poor’, fourth worst in country" (Dec 22, 2025): Reporting on the sudden spike in pollution levels in Panchkula compared to neighbouring cities.

"Soon, you can snap that overspeeding car, and report to Chandigarh Police" (Dec 16, 2025): Breaking news on a new mobile application being developed to allow citizens to report traffic violations via geo-tagged photos.

4. Gangster Culture & Crime

"City Beautiful in the crosshairs of gangsters" (Dec 14, 2025): A feature analysis of how Chandigarh has increasingly become a staging ground for extortion and rivalries between gangster modules.

"Shooters wanted for Parry murder held by Delhi Police Special Cell" (Dec 18, 2025): Following the developments in a high-profile murder case in Chandigarh’s Sector 26.

Signature Style

Jagpreet is recognized for his tenacious follow-up on cold cases and his ability to report on courtroom drama with a focus on victim rights. His work often highlights administrative lapses, whether in the handling of patient welfare funds or the enforcement of environmental standards. ... Read More

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