Chandigarh: High Court questions UT police over de-freezing IDFC accounts after CBI transfer in ₹200-crore MC and CREST fraud case

During the hearing of the bank’s petition, the Punjab and Haryana High Court bench of Chief Justice Sheel Nagu and Justice Sanjiv Berry asked UT police to explain under what authority it had sought to de-freeze at least four IDFC Bank accounts linked to the ₹200-crore MC and CREST funds fraud case, noting that the investigation had already been transferred to the CBI. The bank sought safeguards to prevent dissipation of siphoned funds and requested information from the Enforcement Directorate on PMLA proceedings related to freezing and attachment of proceeds of crime. Bank counsel RS Rai stated that the Ministry of Home Affairs had granted go-ahead for transferring FIRs to the CBI and cited an April 27 communication to the CBI director for transfer. The court questioned UT counsel about continuing letters after transfer, posted the matter to May 14, and asked the UT counsel to seek instructions. The case also involves embezzlement claims of nearly ₹117 crore FDR in MC accounts and ₹75 crore in CREST accounts, with a related ₹590 crore embezzlement from Haryana government accounts.

Chandigarh police issued further letters to the bank concerning the frozen accounts as the investigation was now under the CBI.

Chandigarh police issued letters to the IDFC Bank regarding the frozen accounts even though the investigation had been transferred to the CBI, with the court noting that the local police had effectively ceased to control the investigation post-transfer.

In the backdrop of the case, bank counsel stated that there was a communication dated April 27 sent to the CBI director seeking transfer of FIRs registered by Chandigarh police to the CBI. The Ministry of Home Affairs had reportedly granted go-ahead for transferring the FIRs to the CBI, enabling the shift of the investigation.