The Central Bureau of Investigation (CBI) on 17 June arrested Navneet Srivastava, a senior Indian Forest Service (IFoS) officer and former Chief Executive Officer of the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST), Jammu & Kashmir, in connection with the alleged misappropriation of approximately ₹75 crore from IDFC Bank accounts. Srivastava was subsequently produced before the Special Judge, CBI, Chandigarh, and remanded to police custody for three days.

How the Fraud Was Allegedly Carried Out

Investigators found that funds held across three bank accounts of CREST maintained with IDFC Bank in Chandigarh were fraudulently siphoned and routed through a network of shell companies. The proceeds were allegedly converted for personal benefit by the beneficiaries, causing a loss of roughly ₹75 crore to the government-linked body.

Further investigation revealed that a portion of the diverted funds was channelled into the account of a private company in which Srivastava's wife and a close relative serve as directors — a detail that investigators say points to deliberate concealment of the money trail.

Earlier Arrests and Charge Sheet

Srivastava's arrest is the latest in a series of actions in this case. The CBI had previously detained Sukhwinder Singh Abrol, the then Project Director of CREST, and Sahil Kukkar, an accountant with the organisation. Both have since been charge-sheeted and are currently in judicial custody.

The agency recently filed its first charge sheet against 13 accused persons, including five officials of the private bank, two public servants from CREST under the J&K Administration, two shell entities, and three of their partners, directors, along with one private individual. All named accused are presently in judicial custody.

Background: How CBI Took Over the Case

The CBI assumed jurisdiction over the matter from the Economic Offences Police Station, Chandigarh. The case centres on what investigators describe as a systematic financial fraud involving multiple layers of shell companies and the diversion of government funds earmarked for renewable energy and science and technology promotion initiatives — public money intended to serve the broader public interest in Jammu & Kashmir.

Notably, this is the third arrest directly linked to CREST's alleged fund diversion, underscoring the breadth of the alleged conspiracy across officials, bank employees, and private entities.

CBI's Stance Going Forward

The CBI has reaffirmed its commitment to conducting a thorough, impartial, and expeditious investigation. With Srivastava now in custody, investigators are expected to probe the full extent of the shell company network and trace any remaining unaccounted proceeds. Further arrests in the case cannot be ruled out, given the scale and complexity of the alleged fraud.