The Central Bureau of Investigation (CBI) has arrested two officials of the Haryana Labour Welfare Board (HLWB) in connection with the alleged misappropriation of government funds from an account maintained with the Sector-32 branch of IDFC First Bank in Chandigarh, the agency said on Wednesday.
The agency identified the accused as Jugal Kishor, an Accounts Officer, and Amit Kumar, a contractual accountant with the Labour Welfare Board. According to the CBI, the two were arrested after investigators gathered evidence indicating their alleged involvement in the diversion of public funds through fraudulent banking transactions.
The CBI said the case was taken over following a reference from the Haryana government. “The investigation revealed that government funds amounting to Rs 50 crore were misappropriated from the HLWB account through fraudulent debit transactions and diverted to shell entities,” the agency said. It added that the money was allegedly routed to entities identified as Capco Fintech Services, SRR Planning Gurus Private Limited and Swastik Desh Projects.
Both accused were produced before a competent court after their arrest and have been remanded to CBI custody for further questioning. Investigators are examining the circumstances under which the transactions were authorised and the role of other individuals who may have facilitated the alleged diversion of funds.
The agency said the Labour Welfare Board case forms part of a wider banking fraud under investigation at the Sector-32 branch of IDFC First Bank. “Government funds amounting to approximately Rs 504 crore belonging to eight departments of the Government of Haryana were allegedly siphoned off through forged or non-existent fixed deposits and fraudulent debit transactions before being routed through shell entities,” the CBI said.
The present investigation stems from a probe earlier conducted by the Haryana State Vigilance and Anti-Corruption Bureau, which was later transferred to the CBI at the request of the state government. According to the agency, chargesheets have already been filed against 17 accused, including six officials of IDFC First Bank and AU Small Finance Bank, three Haryana government public servants, two companies and six private individuals.
Reiterating its commitment to the investigation, the CBI said it would continue efforts to identify all those responsible for the alleged fraud, trace the proceeds of crime and ensure that the full extent of the misappropriated public funds is established.