₹504‑crore IDFC First Bank fraud: CBI seeks custodial interrogation of IAS officer over alleged investment limit breaches

The Central Bureau of Investigation has informed a local court that custodial interrogation of an Indian Administrative Service officer is essential to uncover the larger conspiracy alleged in the ₹504‑crore fraud involving IDFC First Bank. The agency’s submission, filed as part of the ongoing probe, states that the officer ignored prescribed investment limits and parked ₹8 crore of public funds without obtaining the required quotations.

According to the CBI, the alleged misappropriation was part of a broader scheme to siphon government money through the private lender. The officer, whose identity remains undisclosed, is accused of approving investments beyond the limits set for the bank’s operations and of moving large sums into accounts without proper documentation. The CBI argues that a custodial interrogation would enable investigators to trace the flow of the siphoned money and identify other individuals involved in the scheme.

The case stems from a complaint filed by the bank’s management, which alleges that the officer’s actions resulted in a loss of ₹504 crore to the public exchequer. The agency’s petition before the court seeks permission to keep the officer in custody for a defined period, allowing it to question him intensively and examine financial records. Legal experts note that such requests are common in cases where the investigation hinges on the ability to interrogate key custodial figures.

The investigation into the IDFC First Bank fraud has drawn attention from financial regulators and policy makers, who are reviewing the adequacy of existing investment norms for public sector banks. While the exact mechanisms by which the funds were diverted remain under scrutiny, the CBI’s focus on custodial interrogation underscores the seriousness of the alleged breach and the need to establish a clear chain of responsibility.

The legal proceedings are expected to continue over the coming weeks, with the court yet to decide on the CBI’s request. The matter is being handled under the provisions of the Criminal Procedure Code, which allow for custodial detention when required for investigation. Authorities have not yet disclosed the officer’s name, and no formal charges have been filed as of the latest update.

Source: Hindustan Times