Haryana Govt Seeks CBI Probe Into ₹590 Crore Scam Involving 2 Pvt Sector Banks

Chandigarh: The Haryana government has recommended a Central Bureau of Investigation (CBI) probe into an alleged Rs 590 crore fraud involving two private sector banks - IDFC First Bank and AU Small Finance Bank considering the magnitude of the ``scam''.

According to information, the funds deposited by various departments of the state government in the two private sector banks, named above, were allegedly misappropriated in collusion by accused who included some former and serving employees of the banks, officials of the state government, besides some private individuals. Names of some IAS officers are also under scanner, if the sources are to be believed.

About 15 persons, including some former and serving bank officials and private individuals, have been arrested since the case came to light in February. Subsequently, the funds were returned to the state government.

Besides the state vigilance and anti-corruption bureau, the enforcement directorate is also investigating the case and has so far conducted searches at 19 locations.

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Official sources said that of the about 12 bank accounts in which the embezzlement was noticed, 10 were in the IDFC First Bank and two were in AU Small Finance Bank. The funds which were meant to be placed in the fixed deposits, were allegedly diverted by the accused bank, government employees and private individuals for personal financial gains. The accused in collusion allegedly created fake firms and companies and diverted government funds into multiple accounts, sources said.

Meanwhile, sources held that CBI, upon taking the case, might not only widen the scope of the investigation but could also examine the role of bureaucrats in the alleged fraud of the public funds.