Chandigarh, March 12 (AHN) The investigation into the IDFC First Bank scam has revealed that the main accused created several shell companies and illegally transferred government funds to various accounts, Additional Director General of Police Charu Bali, who is posted with the State Vigilance and Anti-Corruption Bureau, said on Thursday.

She said preliminary investigations have revealed that funds were transferred from government department accounts to these shell companies without authorization.

These companies include R.S. Traders, Cap Co Fintech Services, S.R.R. Planning Gurus Private Ltd, and Swastik Desh Project.

She told the media in Panchkula, near here, that on February 23 a case was registered against unknown officials of IDFC First Bank and AU Small Finance Bank under Section 13 (2) read with 13 (1)(a) of the Prevention of Corruption Act of 1988 and Sections 316 (5), 318 (4), 336 (3), 338, 340 (2) and 61 (2) of the Indian Penal Code of 2023.

The investigation has revealed the involvement of 12 bank accounts belonging to eight departments, including 10 at IDFC First Bank’s branch in Sector 32 in Chandigarh, and two at AU Small Finance Bank.

Extensive raids have been conducted at 16 locations in connection with this case. Video footage has also been obtained from some locations, she said.

The Additional Director General said 11 accused have been arrested, including six bank employees, four private individuals, and one government official.

Among them, 10 are currently in judicial custody while one accused is on police remand.

The investigation team during searches has recovered crucial documents relating to property purchases suspected to have been made using proceeds of the crime.

Additionally, more than 25 electronic devices, including mobile phones and laptops, have been seized and sent for examination to the Cyber Forensic Laboratory.

Authorities have also seized six luxury vehicles, including three Toyota Fortuners, two Innovas, and one Mercedes, which are suspected to have been purchased from illicit proceeds, she said.

Furthermore, requests have been sent to freeze over 100 bank accounts suspected to be linked to the fraudulent transactions. Investigations have also identified unauthorized financial transactions in eight government departments, and a detailed scrutiny of financial records for the past one year is currently underway and nearing completion.

In the investigation so far, the involvement of several government officials and employees and private individuals has also been identified.

Upon confirmation, action will be taken against the culprits by the Vigilance Bureau, she said.

Additionally, 10 properties have been identified which are reasonably suspected to have been purchased using the proceeds of crime.

The probe has also uncovered that the accused manipulated banking records by preparing fake debit memos or transferring funds without any valid debit memo or cheque authorisation.

Investigators have further found that forged bank statements were prepared to facilitate the transfer of funds to multiple accounts directly or indirectly linked to the accused and their relatives.

According to the Additional Director General of Police, a large volume of records has been obtained from banks and departments concerned, which are being meticulously analyzed to identify both authorized and unauthorized transactions and trace the complete fund flow.

The Vigilance Bureau stated that relevant information is also being shared with other investigating agencies as required. The case is being pursued with close coordination among various government agencies.