CBI Files Chargesheet in Rs 83-Crore CREST Fund Scam at IDFC First Bank

The Central Bureau of Investigation (CBI) has filed a detailed chargesheet in the Rs 83-crore fraud case involving the Chandigarh Renewable Energy Science and Technology Promotion Society (CREST). The chargesheet, filed in a Chandigarh court, names 13 accused, including 11 individuals and two companies, and runs over 240 pages. This is the second major chargesheet in a series of scams involving government money deposited in the same branch of IDFC First Bank.

The case revolves around Rs 83.04 crore belonging to CREST, a government body under the Chandigarh Administration. This money was kept in bank accounts for official use, primarily for renewable energy projects. The fraud was uncovered when officials noticed discrepancies during a routine check of bank records.

According to the investigation, the scam was not a single theft but a series of repeated illegal transactions. Around 300 unauthorized transactions were detected, and the money was quietly moved out of CREST accounts over time. Officials were shown fake bank statements, which made everything appear normal on paper, thereby hiding the fraud for an extended period.

The investigation also found that the bank statements sent to CREST were allegedly forged. These statements were reportedly sent through official-looking email accounts, making them seem genuine and aiding in the concealment of the fraud. This sophisticated method of forging documents and using official-looking communication channels made it difficult for the authorities to detect the discrepancies early on.

The total impact of the fraud is not just the money stolen but also the interest that the government funds should have earned while in the bank. Officials have calculated that Rs 75.16 crore was the actual principal loss, and Rs 7.88 crore was lost as interest. This means the total financial impact of the scam is significant.

The fraud was discovered during a reconciliation exercise, where officials compared internal records with bank statements. This check was prompted by similar irregularities noticed in another government-linked fund in Haryana, which led to a deeper review of CREST’s accounts and the eventual exposure of the missing money.

Initially, the Chandigarh Police registered FIR No. 03 on March 12, 2026, after discrepancies were found in the CREST accounts. However, due to the scale and complexity of the fraud, the case was transferred to the Central Bureau of Investigation for a more detailed probe.

Investigators believe that the stolen money was not just withdrawn in cash but also converted into assets to obscure its origin. The funds were allegedly used to purchase jewellery, gold and bullion, cash holdings, and real estate properties. This process, known as money laundering, is often used to “clean” illegal money and make it difficult to trace.

This is the second chargesheet in a broader series of cases involving government funds kept in IDFC First Bank’s Chandigarh branch. A separate Rs 153-crore scam linked to Chandigarh Smart City funds is also under investigation. The CBI’s involvement in these cases underscores the seriousness of the financial irregularities and the need for stringent measures to prevent such scams in the future.