The IDFC First Bank had earlier said that an alleged Rs 590-crore fraud was committed by its employees and others in accounts held by the Haryana government. (File photo)The Central Bureau of Investigation (CBI) on Thursday took over the probe into the embezzlement of Rs 590 crore from the Haryana government’s accounts maintained with IDFC First Bank in Chandigarh. The Economic Offences Wing of the agency registered a fresh FIR on the basis of another FIR registered by the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB) on February 23, 2026 in Panchkula.“The FIR was registered under Section 13(2) read with 13(1)(a) of the Prevention of Corruption Act, 1988 (as amended in 2018) and Section 316(5), 318(4), 336(3), 338, 340(2) and 61(2) of the Bhartiya Nyaya Sanhita, 2023,” as per a CBI statement. The investigation has been entrusted to ASP Puspal Paul, CBI, EO-III, New Delhi, it added.This comes on a day when Haryana government suspended two IAS officers — RK Singh and Pradeep Kumar — after their alleged role surfaced in the ongoing investigation into the scam.“The case involves serious allegation of misappropriation of government funds… and a large scale, organized and multi-layered fraud pertaining to banking operations and entities, allegedly undertaken in a systematic manner to siphon off government funds into the accounts of shell firms, including Swastik Desh Project, SRR Planning Gurus Pvt. Ltd., Cap Co Fintech Services, R.S. Traders and others…resulting in substantial loss to the public exchequer, estimated to exceed Rs 550 crores,” as per a CBI statement.The Haryana government had decided last month to hand over the probe to the CBI.Must Read | Rs 75-cr IDFC First Bank-linked CREST scam: 3 arrested, sent to judicial custodyThe IDFC First Bank had earlier said that an alleged Rs 590-crore fraud was committed by its employees and others in accounts held by the Haryana government.As part of the probe, the SV & ACB arrested two former IDFC First Bank employees and several private persons who own a partnership firm.Story continues below this adAccording to the police and ED allegations, Haryana government funds were supposed to be deposited in the bank in FDs but were allegedly diverted by the accused for their personal purpose. Preliminary probe shows “huge” funds were transferred to various shell companies and jewellery entities and finally siphoned off under the guise of gold purchase and investment into real estate sector. A “significant” amount of cash withdrawals has also been noticed in this money trail.IDFC First Bank has said that it has paid out 100 per cent of the principal and interest to the relevant departments of the Haryana government. “The bank remains committed to working together with the relevant Haryana Government departments and the law enforcement agencies to pursue actions against the perpetrators of the fraud and looks forward to recovering our dues,” IDFC First Bank had said in a regulatory filing.Stay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:FIRIDFC First Bank