The Central Bureau of Investigation (CBI) has arrested two bank officials, including former senior employees of IDFC First Bank and AU Small Finance Bank, in connection with a ₹504-crore fund diversion case linked to Haryana government departments. The arrests mark a significant development in an ongoing probe into alleged large-scale financial irregularities involving public funds and banking channels.

The officials arrested have been identified as Shamim Dar, then area head at IDFC First Bank, and Charanjeet Singh Randhawa, then branch manager at AU Small Finance Bank’s Mohali branch. According to the CBI, both individuals are suspected of playing a role in facilitating fraudulent financial transactions that allegedly enabled the diversion of government money through banking systems.

Investigators said the alleged fraud originated at the Sector 32 branch of IDFC First Bank in Chandigarh, where surplus funds belonging to eight Haryana government departments were reportedly siphoned off. The funds were allegedly misappropriated through forged or non-existent fixed deposits and manipulated debit notes. The agency further stated that the diverted money was later routed through shell companies to conceal its origin and movement.

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The CBI took over the investigation from the Haryana State Vigilance and Anti-Corruption Bureau following a request from the state government. Officials said preliminary findings pointed to a coordinated effort involving bank personnel, government officials, and private entities, enabling the alleged diversion of public funds over a period of time.

So far, the agency has filed chargesheets against 17 accused individuals in the case, including six bank officials, three Haryana government employees, two companies, and six private persons. Investigators continue to trace the full financial trail to determine the extent of the alleged fraud and identify additional beneficiaries or facilitators involved in the network.

In a separate but related development, the CBI has also filed chargesheets in two other cases involving the Chandigarh Smart City project and CREST Chandigarh after taking over investigations from the Union Territory administration. Officials said efforts are ongoing to recover misappropriated funds and ensure accountability in cases involving public financial institutions and government-linked projects.

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