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CBI Files Chargesheets and ED Arrests Raise Stakes in IDFC First Bank Public‑funds Probe

Law enforcement agents say charges and an ED arrest expose a layered scheme of shell firms, forged documents and cash conversions and signal more prosecutions and asset recovery ahead.

Overview

  • The CBI on June 12 filed two chargesheets that allege about ₹657 crore was misappropriated from Haryana government and Chandigarh Smart City accounts held at IDFC First Bank.
  • The Enforcement Directorate arrested former Haryana panchayat superintendent Naresh Kumar in early June and says he received proceeds and acted as a middleman in converting diverted funds into cash.
  • Investigators say the scheme used fictitious fixed‑deposit receipts and a network of shell companies and jewellers to turn bank transfers into cash and hide the money trail.
  • The CBI and ED have named bankers, government officials, a realtor and a jeweller among the accused, including Vikram Wadhwa, Ribhav Rishi and Rajan Singh Katodia, and have charged them with conspiracy, forgery and corruption offences.
  • IDFC First Bank says it reimbursed ₹583 crore of principal and interest to Haryana departments while agencies trace assets, probe other banks and properties in the Tricity, and warn more chargesheets and recovery steps are likely.