CBI searches five locations in Chandigarh, Ludhiana in ₹504 crore bank fraud probe

The Central Bureau of Investigation (CBI) on Thursday carried out searches at five locations in Chandigarh and Ludhiana as part of its investigation into the alleged misappropriation of funds belonging to the Municipal Corporation Chandigarh and Chandigarh Smart City Limited (CSCL), while also seeking details of the foreign travel undertaken by IAS officer Mohammad Shayin since 2011, according to sources. The officer has not been named as an accused in the case.

In an official statement, the CBI said the searches were conducted at residential and business premises linked to suspected beneficiaries of the alleged fraud, including locations associated with CSCL official Anubhav Mishra and certain private entities connected with the investigation.

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The agency said the operation resulted in the seizure of several documents and electronic records, including digital storage devices, digital signatures, financial records, property-related documents and other electronic evidence. These materials are now being examined as investigators attempt to trace the movement of public funds and identify the alleged beneficiaries.

Sources said the CBI has also sought information from the Haryana Government regarding Mohammad Shayin’s overseas visits from 2011 onwards. The agency is understood to have sought details of the purpose of the visits, the authority under which they were undertaken and the source of funding. However, officials said the IAS officer has not been arraigned as an accused, and the investigation is continuing.

The case is linked to an alleged ₹504 crore bank fraud involving the Sector-32 branch of IDFC First Bank in Chandigarh. According to the CBI, funds belonging to eight Haryana government departments were allegedly siphoned off through forged or non-existent fixed deposits and fraudulent debit transactions before being routed through shell entities. The investigation was transferred to the CBI from the Haryana State Vigilance and Anti-Corruption Bureau at the request of the state government.

The agency said it has already filed chargesheets against 17 accused, including six bank officials from IDFC First Bank and AU Small Finance Bank, three Haryana government public servants, two companies and six private individuals.

Apart from the bank fraud investigation, the CBI is also probing two other cases related to Chandigarh Smart City Limited (CSCL)/Municipal Corporation Chandigarh and the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST). Chargesheets have already been filed in both matters.

“The CBI remains committed to bringing all those responsible to justice and ensuring that the complete trail of misappropriated public funds is identified and the proceeds of crime are effectively traced,” the agency said.