IDFC First Bankscam: CBI searches in Chandigarh, Ludhiana

New Delhi: The CBI has conducted searches at multiple locations in Chandigarh and Ludhiana in connection with the alleged Rs 657 crore misappropriation of funds from the IDFC First Bank accounts of Chandigarh Smart City Ltd. and Municipal Corporation Chandigarh, officials said on Thursday.

"The searches were conducted at five locations, including residential premises, business establishments of suspected beneficiaries of the defrauded funds belonging to Municipal Corporation Chandigarh and Chandigarh Smart City Limited (CSCL), public servant Anubhav Mishra of CSCL and private entities connected with the investigation," a CBI spokesperson said in a statement.

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The searches resulted in the recovery of incriminating documents and articles.

"These include digital evidence like storage drives, digital signatures, property related documents, financial records, multiple electronic devices and other documents relevant to the investigation," it said.

The CBI had taken over the investigation from the State Vigilance and Anti-Corruption Bureau, Haryana, at the request of the state government.

The fraud took place at the Sector-32 Branch of the IDFC First Bank, Chandigarh, wherein government funds were allegedly siphoned off through forged/non-existent fixed deposits and fraudulent debit transactions and subsequently routed through shell entities.

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The total loss caused to the Haryana government by the illegal transactions is Rs 504 crore, while in Chandigarh's case, it is Rs 153 crore, the CBI spokesperson said.

The agency had filed charge sheets in a number of cases related to the fraud and also arrested three senior IAS officers.