IDFC First Bank fraud cases: CBI files 2 chargesheets in Haryana, Chandigarh

The Central Bureau of Investigation (CBI) on Friday filed two fresh chargesheets in connection with the bilking of funds belonging to the Haryana government and Chandigarh Smart City Limited (CSCL) from IDFC First Bank, officials said.

The agency named real estate businessman Vikram Wadhwa and Rajan Katodia in the alleged Rs 504-crore Haryana government funds misappropriation case. It also chargesheeted several accused, including five bank officials, an official of CSCL, and one private person, in the alleged Chandigarh Smart City Limited (CSCL) fraud case involving a loss of around Rs 153 crore.

The chargesheet in the Haryana case was filed before the Special CBI Court, Panchkula. The CBI said Wadhwa and Katodia were arraigned as recipients of the alleged proceeds of crime. The filing marks the second chargesheet in the case registered by CBI for the Haryana-related scam.

Earlier, the CBI had chargesheeted 15 accused, including three government officials, six bank officials, two companies and four private individuals. The agency had taken over the investigation from the Haryana State Vigilance and Anti-Corruption Bureau, which was probing alleged irregularities involving funds belonging to eight Haryana government departments.

According to the agency, the alleged loss caused to the state exchequer in the transactions under scrutiny is around Rs 504 crore.

In the CSCL case, the agency filed its first chargesheet before the Special CBI Court in Chandigarh.

The chargesheet names former IDFC First Bank branch manager Ribhav Rishi, former CSCL chief finance officer Nalini Malik, bank officials Abhay Kumar and Seema Dhiman, and real estate businessman Vikram Wadhwa among the accused. The CBI said a total of seven persons were chargesheeted in the case.

Story continues below this ad

The offences invoked in the chargesheets include criminal conspiracy, criminal breach of trust, forgery and cheating, besides provisions of the Prevention of Corruption Act.

The Chandigarh case stems from one of the two FIRs registered by Chandigarh Police’s Economic Offences Wing in connection with alleged financial irregularities involving CSCL and the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST). Both cases were subsequently transferred to the CBI.

The agency later registered separate FIRs under provisions of the BNS and the Prevention of Corruption Act to investigate the alleged fraud.

The CBI said the CSCL case pertains to the alleged diversion of Rs 116.84 crore linked to fixed deposit receipts purportedly created in the name of CSCL. The alleged irregularities came to light during the winding up of CSCL and the transfer of its assets and liabilities to the Municipal Corporation.

Story continues below this ad

During reconciliation of accounts, fixed deposits reflected in official records were allegedly found to have no corresponding deposits in bank records.

The parallel CREST investigation concerns the alleged siphoning of around Rs 75 to Rs 83 crore through unauthorised transactions and forged documentation.

Earlier investigations had alleged that funds were routed through shell entities and diverted into private accounts and investments.

According to the allegations outlined by the CBI, Ribhav Rishi, the then-branch manager of IDFC First Bank’s Sector 32 branch, played a central role in the alleged conspiracy.

Story continues below this ad

The agency has alleged that Nalini Malik, Abhay Kumar and Seema Dhiman performed different roles in the creation of fake fixed deposit receipts, manipulation of financial records and processing of unauthorised transactions. Wadhwa has been accused of receiving and investing diverted funds through entities linked to him.

The CBI had earlier alleged that fake fixed deposit receipts, forged banking documents and unauthorised transactions were used to siphon funds from accounts of government-linked entities maintained with the bank.

The Enforcement Directorate (ED) is also conducting a parallel investigation under the Prevention of Money Laundering Act (PMLA).

The agency recently arrested Wadhwa and has alleged that funds belonging to the Haryana Government, Chandigarh Administration, and two private schools in Chandigarh and Panchkula were siphoned through fraudulent transactions from accounts maintained with IDFC First Bank.

Story continues below this ad

According to the ED, Wadhwa, along with co-accused Ribhav Rishi, Abhay Kumar and others, was involved in the generation, layering and concealment of proceeds of crime. The agency has alleged that more than Rs 70 crore was transferred to Wadhwa’s personal account and subsequently invested in business entities and immovable properties linked to him.

The CBI officials said the investigation is continuing and further chargesheets are likely to be filed.