IDFC First Bank linked Rs 83-crore CREST fund scam: CBI files chargesheet, flags 300 unauthorised transactions and forged statements

IDFC Bank Fraud Case: The Central Bureau of Investigation has filed a detailed chargesheet in a Rs 83-crore fraud case involving government funds of the Chandigarh Renewable Energy Science and Technology Promotion Society (CREST). The case is linked to money kept in the Chandigarh branch of IDFC First Bank and has now become part of a wider investigation into misuse of public funds.

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 bank branch.

What the case is about

At the centre of the case is Rs 83.04 crore belonging to CREST, a government body under the Chandigarh Administration. This money was kept in bank accounts for official use, including renewable energy projects.

The fraud came to light when officials found that a large portion of this money was missing or unaccounted for during a routine check of bank records.

How the fraud worked

According to investigators, the scam was not a single theft but a series of repeated illegal transactions.

Around 300 unauthorised transactions were detected
Money was quietly moved out of CREST accounts over time
Officials were shown fake bank statements so everything appeared normal

In simple words, the system looked fine on paper, but the actual money was being drained in the background.

The investigation also found that bank statements sent to CREST were allegedly forged. These statements were reportedly sent through official-looking email accounts, making them seem genuine and hiding the fraud for a long time.

How much money was lost

Officials have calculated that:

Rs 75.16 crore was the actual principal loss
Rs 7.88 crore was lost as interest

This means the total impact is not just the money stolen, but also the earnings that the government funds should have made while being in the bank.

How the scam was detected

The fraud was discovered during a reconciliation exercise, where officials compared internal records with bank statements.

This check was done after similar irregularities were noticed in another government-linked fund in Haryana. That triggered a deeper review of CREST’s accounts, which eventually exposed the missing money.

From police case to CBI investigation

Initially, Chandigarh Police registered FIR No. 03 on March 12, 2026, after discrepancies were found in the CREST accounts.

Later, because of the scale and complexity of the fraud, the case was transferred to the Central Bureau of Investigation for a detailed probe.

Where the money allegedly went

Investigators believe the stolen money was not just withdrawn in cash but also converted into assets to hide its origin. The funds were allegedly used to buy:

Jewellery
Gold and bullion
Cash holdings
Real estate properties

This process is often used to “clean” illegal money and make it difficult to trace.

Bigger pattern under investigation

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.