Disclosures in the alleged Rs 75 crore CREST-IDFC scam have revealed how public money was allegedly siphoned off through bank accounts opened in connivance with officials, routed via shell firms, and invested in real estate.The three IDFC First Bank officials — Rishav Rishi, Abhay Kumar and Seema Dhiman — have allegedly disclosed during interrogation that “bank accounts of CREST were opened in their branch by them with the connivance of CREST officials”, and that shell firms were subsequently created to route the siphoned money, as per remand papers of the Chandigarh Police.According to the police, the accused officials were posted at the bank’s Sector 32 branch between 2023 and 2025 and played a key role in facilitating the operation of these accounts. The police stated that large sums of public funds were parked in the CREST accounts and later diverted through a structured mechanism involving dummy entities.The remand papers reveal that “…they made shell firms with the connivance of CAO of Smart City Project, and Chief Executive manager of Smart City Project and Municipal Corporation officer…” Three such firms — CAPCO Fintech, R S Traders and Swastik Desh Project — have been identified during the probe. These firms were allegedly floated in the names of close aides, including drivers and relatives of the accused, in an attempt to obscure the financial trail.During questioning, the accused also disclosed the utilisation of the siphoned funds. As per the documents, “the above said amount has been invested in real estate business with the help of accused Vikram Wadhwa”.Wadhwa, who has already been arrested, is suspected to have facilitated the alleged diversion of funds into property investments.The disclosures also point towards alleged payments to officials linked to the Smart City project and the municipal corporation.In the remand paper, it has been alleged that “… they (accused bank officials) transferred/paid the amounts in crores to Ms Nalini Malik, CAO of Smart City Project, and Narender Pal Sharma, chief executive manager of Smart City Project, and MC officials and other official, Sukhwinder Singh, and his family members through the said firm’s accounts and other account, and in cash…”Also Read | Rs 590-crore IDFC First Bank fraud case: How an AU Bank regional head ‘aided’ key accused, pocketed Rs 10 croreEarlier findings in the case had indicated that a total of 272 unauthorised transactions were carried out in CREST bank accounts, leading to a principal loss of more than Rs 75 crore.Police have also found that bank account statements, which were regularly being received through the official email IDs of the bank officials — Abhay Kumar and Seema Dhiman of IDFC First Bank, Sector-32 Branch — were showing balances corresponding to the actual authorised transactions of CREST and the same were being relied upon for reconciliation of accounts.Story continues below this adHowever, upon receipt of the original hard copy of statements from the bank branch, it was observed that the previously received statements were forged/manipulated and did not reflect the actual transactions in the bank accounts.Meanwhile, Vikram Wadhwa, also arrested in this matter by the Chandigarh Police and currently in a police remand of EOW (Economic Offences Wing), has also disclosed to the police that funds from government accounts were routed via shell firms and invested in real estate.Realtor and hotelier Vikram Wadhwa, in his statement recorded by the Chandigarh Police, has disclosed that he was introduced to Ribhav Rishi, then associated with IDFC First Bank, through his father Rakesh Kumar Rishi.“He had facilitated the loan for my Landmark Hotel… and later introduced me to his son Ribhav Rishi,” Wadhwa stated in his disclosure as per the remand paper.Story continues below this adWadhwa revealed that after Ribhav Rishi became a bank manager, he informed him that several government department accounts held substantial funds.“He told me that since I require funds for investment in real estate, he could arrange large amounts of funds from government department accounts… without any interest,” the disclosure reads.As per Wadhwa’s disclosure, “…he (Rishav Rishi) assured that no one would come to know of these transactions and that he would manage the bank statements of those departments himself…”To execute the plan, shell entities such as Capco Fintech Services, R S Traders, and Swastik Desh Project were allegedly used as intermediaries.“Funds from government department accounts… would first be transferred to the accounts of these companies and thereafter routed into my bank accounts,” Wadhwa stated in his disclosure, as per the remand paper.Story continues below this adHe admitted that the siphoned money was invested in multiple real estate ventures across Chandigarh, Mohali, Kharar and other locations.“Funds amounting to several crores were transferred… and invested in residential as well as commercial projects over the last three-four years,” he disclosed.The statement also points to a profit-sharing arrangement between the accused and bank officials. Wadhwa claimed that reverse entries were made to return funds to government accounts when required, ensuring the transactions remained undetected.As per the police remand paper, Wadhwa named government entities, including Chandigarh Smart City Limited, Municipal Corporation Chandigarh, CREST, and departments of the Haryana government, whose funds were allegedly diverted.Story continues below this adHe also told the police that crucial documents related to these investments are kept at various locations with his relatives and can be recovered with his assistance.All four accused are currently on police remand.Another bank, another scamPanchkula: Officials of a branch of Kotak Mahindra bank are under scrutiny in Panchkula following allegations of embezzlement of crores of rupees belonging to the Municipal Corporation, with the funds allegedly diverted through fake accounts using forged documents.The development comes soon after the Rs 590-crore IDFC First Bank fraud case, in which several bank and government officials have been arrested. Police sources said the Municipal Corporation had deposited approximately Rs 160 crore in the bank in the form of fixed deposits over a period of time. However, bank officials, in alleged collusion with certain employees, siphoned off the funds by routing them into fictitious accounts, while providing fabricated records to show that the deposits were intact.The irregularity came to light when the MC sought transfer of maturity proceeds of a fixed deposit worth Rs 58 crore. While bank records reflected that the amount had been credited, the funds did not appear in the corporation’s account. Subsequent verification revealed that the statement itself was forged. Further checks suggested that several other fixed deposits were also not backed by actual funds.Story continues below this adThe Municipal Corporation has initiated the process of registering an FIR. Municipal Commissioner Vinay Kumar did not respond to calls and messages seeking his response.