The investigation into the alleged diversion of government funds kept in private banks in Haryana has now been handed over to the Central Bureau of Investigation (CBI).
The Central Bureau of Investigation (CBI) is the domestic crime investigating agency of India. It operates under the Ministry of Personnel, Public Grievances and Pensions. It was originally set up to investigate bribery and government corruption. In 1965, its role was expanded to include investigation of central laws, multi-state organised crime, and international cases. The CBI is exempt from the Right to Information Act. It is also the official agency that acts as India’s link with Interpol. The CBI headquarters is located in the CGO Complex near Jawaharlal Nehru Stadium in New Delhi.
This step was taken after irregularities were found in accounts of different state departments in private banks. Earlier, the Anti-Corruption Bureau (ACB) had started the probe and made several arrests, mostly of bank employees.
Now, the CBI will carry out a wider investigation. It will check whether only bank staff were involved or if any government officials were also part of the fraud.
The issue started when IDFC First Bank found suspicious transactions in accounts linked to Haryana government departments. After further checking, it was found that funds worth hundreds of crores may have been misused. Later, similar issues were also found in AU Small Finance Bank and Kotak Mahindra Bank.
About ₹590 crore linked to Haryana government departments is under investigation in IDFC First Bank and AU Small Finance Bank. Around ₹160 crore belonging to the Panchkula Municipal Corporation was found suspicious in Kotak Mahindra Bank.
At first, it looked like a small issue found during internal checks at IDFC First Bank. But later, it turned into a big case involving multiple banks and large amounts of public money.
The matter also led to political debate in Haryana. Opposition leaders questioned how such large transactions were not noticed earlier and demanded accountability from both banks and government officials.
The Haryana government said that due to the large scale of financial irregularities, it decided to hand over the case to the CBI. Officials believe the fraud may involve a larger network and needs a detailed investigation.
The CBI will now examine:
- Whether bank officials acted alone
- Whether any government officials were involved or ignored the issue
- How internal checks failed in multiple banks
Meanwhile, the government has recovered some of the money. Around ₹127.27 crore of Panchkula Municipal Corporation funds has been recovered from Kotak Mahindra Bank. Another ₹25 crore belonging to Haryana Power Generation Corporation Ltd (HPGCL) has been recovered from AU Small Finance Bank.
Haryana Chief Minister Nayab Singh Saini has directed officials and banks to recover all public money and fix responsibility.
He said that protecting public funds is the government’s top priority. He also said strict action will be taken against those found guilty. The Chief Minister added that the government is working according to the principles of transparency and accountability promoted by Narendra Modi.
