CBI raids 7 locations in Chandigarh, Panchkula in IDFC First Bank scam
Synopsis
A routine bank account closure request by a Haryana government department in February 2025 unravelled one of the state's biggest banking frauds — alleged collusion between bank officials and public servants to siphon government funds. The CBI, now with 16 arrests and fresh raids at 7 locations, is racing to trace the full money trail, with the ED running a parallel probe.
Key Takeaways
The CBI searched 7 locations in Chandigarh and Panchkula on 15 May 2025 in the IDFC First Bank and AU Small Finance Bank scam .
Searches covered residential premises, jewellers' showrooms, and premises of suspected fund beneficiaries; financial records and digital evidence were seized.
16 accused persons have been arrested in the case so far.
The scam came to light in February 2025 during a routine account closure by Haryana's Development and Panchayats department .
IDFC First Bank says it has repaid ₹557 crore to the concerned state departments; investigation is ongoing.
Both the CBI and the Enforcement Directorate (ED) are probing the case simultaneously.
The Central Bureau of Investigation (CBI) conducted searches at 7 locations across Chandigarh and Panchkula on Thursday, 15 May, as part of its probe into the Haryana IDFC First Bank and AU Small Finance Bank scam, aimed at tracing 'the routing and siphoning of ill-gotten money' from a large-scale embezzlement of government funds. The agency confirmed the searches in an official statement released on Friday, noting that 16 accused persons have been arrested in the case so far.
What the Searches Covered
The CBI's search operations spanned residential premises, business establishments, showrooms of jewellers, and premises of suspected beneficiaries of the misappropriated government funds, along with other private entities connected with the investigation. Investigators recovered and seized various incriminating materials during the raids, including financial records and digital evidence related to the alleged fraud and suspected misappropriation.
What the CBI Said
'The investigation has been expedited by the CBI, and several leads are being pursued. CBI is committed to conducting a comprehensive investigation in this case in the quickest possible time,' the agency said in its official statement. The searches were focused on establishing the money trail from the embezzlement of public funds.
How the Scam Came to Light
The fraud first surfaced in February 2025 when an official in the Haryana government's Development and Panchayats department attempted to close its account and transfer the balance to another bank. That routine transaction revealed massive discrepancies between official records and the actual balance — exposing what investigators allege was a large-scale misappropriation of government funds.
It is alleged that certain officials of IDFC First Bank and AU Small Finance Bank, acting in connivance with public servants across various departments of the Government of Haryana, siphoned government funds through fraudulent means. Haryana's Vigilance and Anti-Corruption Bureau initially registered an FIR, after which the state government transferred the case to the CBI. The Enforcement Directorate (ED) has since launched a parallel probe.
IDFC First Bank's Position
IDFC First Bank has maintained that it had repaid ₹557 crore to the concerned state government departments, though the investigation remains ongoing. The bank has not publicly commented on the latest search operations.
What Happens Next
With the CBI actively pursuing multiple leads and the ED running a parallel investigation, the case is likely to see further arrests and asset seizures. The dual-agency probe signals the Centre's intent to treat this as a high-priority financial crime. The scale of the alleged misappropriation — involving both private banks and government officials — makes it one of the more significant banking fraud cases in Haryana in recent years.
Point of View
The investigation has the structure to go wide — but the real test is whether it reaches the political and bureaucratic layers that allegedly enabled the collusion, not just the bank officials and peripheral beneficiaries. The ₹557 crore repayment claim by IDFC First Bank, while notable, does not resolve the question of how the discrepancies persisted undetected for so long. India's banking fraud cases have a pattern of wide initial arrests followed by slow judicial progress — this case will be watched to see if it breaks that pattern.
NationPress
20 Jul 2026
Frequently Asked Questions
What is the IDFC First Bank scam in Haryana?
The Haryana IDFC First Bank scam involves the alleged misappropriation of government funds by officials of IDFC First Bank and AU Small Finance Bank, reportedly acting in connivance with public servants across Haryana government departments. The fraud came to light in February 2025 when a routine account closure attempt revealed massive discrepancies between records and actual balances.
Why did the CBI conduct raids in Chandigarh and Panchkula?
The CBI searched 7 locations in Chandigarh and Panchkula on 15 May 2025 to trace the routing and siphoning of funds from the alleged embezzlement. Targets included residential premises, jewellers' showrooms, and premises of suspected beneficiaries of the misappropriated government funds.
How many people have been arrested in the IDFC First Bank scam?
As of 16 May 2025, 16 accused persons have been arrested in connection with the case. The CBI has stated it is pursuing several leads and is committed to completing a comprehensive investigation as quickly as possible.
What is IDFC First Bank's response to the scam?
IDFC First Bank has maintained that it repaid ₹557 crore to the concerned Haryana state government departments. However, the investigation by both the CBI and the Enforcement Directorate remains ongoing.
Which agencies are investigating the Haryana bank scam?
The case was initially registered by Haryana's Vigilance and Anti-Corruption Bureau before the state government transferred it to the CBI. The Enforcement Directorate has since launched a parallel probe, making it a dual-agency investigation into the alleged fraud.
