The Central Bureau of Investigation (CBI) on Thursday conducted searches at multiple locations in Chandigarh and Panchkula in a case of misappropriation of Haryana government funds by private sector banks IDFC First and AU Small Finance.
On April 8, the federal agency took over the probe into the alleged misappropriation of more than ₹550 crore of Haryana government funds parked with IDFC First Bank and AU Small Finance Bank. A CBI spokesperson said the allegation is that certain officials of IDFC First Bank and AU Small Finance Bank, in connivance with Haryana officials working in various departments misappropriated government funds through fraudulent means.
The spokesperson said search operations were conducted at seven locations, including houses, business establishments/showrooms of jewellers, premises of suspected beneficiaries of the misappropriated government funds, and other private entities connected with the investigation.
“During searches, various incriminating documents and articles were recovered and seized. These include financial records and digital evidence pertaining to the fraud and suspected misappropriation. So far, 16 people have been arrested in the case and several leads are being pursued,” the spokesperson said.
The CBI registered a regular case (RC), equivalent to an FIR, replicating the first information report by the Haryana Anti-Corruption Bureau (ACB) on February 23, 2026, against unknown accused. The RC was registered after the Haryana government made a reference to the Centre granting its consent.
On April 8, the central government issued a notification through the department of personnel and training under Section 5 of the DSPE Act, extending CBI’s jurisdiction to Haryana for investigation of FIR number 4 of February 23, 2026, registered by ACB, Panchkula, under Section 13(2) read with 13(1)(a) of the Prevention of Corruption Act, 1988 (as amended in 2018) and Section 316(5), 318(4), 336(3), 338, 340(2) and 61(2) of the Bharatiya Nyaya Sanhita.
“The case involves serious allegations of misappropriation of government funds and a large scale, organised, and multi-layered fraud pertaining to fraudulent banking operations and fictitious transactions allegedly undertaken in a systematic manner to siphon off government funds into the accounts of shell entities, including Swastik Desh Project, SRR Planning Gurus Pvt Ltd, Cap Co Fintech Services, RS Traders and other associated firms and individuals, resulting in a substantial loss to the public exchequer, estimated to exceed ₹550 crore,” reads the RC registered by CBI’s economic offences wing-III in New Delhi.
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