New Delhi, 23 July (H.S.): The Central Bureau of Investigation (CBI) has conducted searches at five locations in Chandigarh and Ludhiana in connection with an alleged fund embezzlement case involving the accounts of Chandigarh Smart City Limited (CSCL) and the Municipal Corporation Chandigarh.

During the searches, the agency recovered and seized digital evidence, financial records, property-related documents, electronic devices and other important documents linked to the investigation.

According to the CBI, the action was carried out as part of an ongoing probe into the alleged misuse of funds from the accounts of Chandigarh Smart City Limited and Municipal Corporation Chandigarh maintained with IDFC First Bank.

The searches were conducted at the residential and commercial premises of suspected beneficiaries, CSCL official Anubhav Mishra, representatives of private entities involved in the matter and other suspected individuals.

The agency stated that the seized material includes storage drives, digital signatures, property records, financial transaction documents, multiple electronic devices and other crucial evidence. The documents and electronic records are being examined and analysed in detail.

The CBI said the case is part of a major banking fraud linked to the IDFC First Bank branch located in Sector 32, Chandigarh. The alleged fraud involves the withdrawal of around Rs 504 crore of government funds belonging to eight departments of the Haryana government through fake or non-existent fixed deposits (FDs) and fraudulent debit transactions, followed by transfers through shell companies.

The agency said it took over the investigation following a request from the Haryana government and after taking over the case from the state Vigilance and Anti-Corruption Bureau.

In the Haryana-related case, the CBI has so far filed charge sheets against 17 accused persons. Those named include six bank officials from IDFC First Bank and AU Small Finance Bank, three public servants of the Haryana government, two companies and six private individuals.

The CBI has also taken over the investigation of two other cases related to the Chandigarh Union Territory. One case involves Chandigarh Smart City Limited and the Municipal Corporation Chandigarh, while the other is related to the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST).

In the CSCL case, the CBI has already filed a charge sheet against five bank officials, one CSCL official and one private individual.

In the CREST case, charge sheets have been filed against five bank officials, two CREST officials, four private individuals and two companies.

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Hindusthan Samachar / Jun Sarkar