Former CREST CEO sent to judicial custody in funds diversion case

Former CREST CEO Srivastava was sent to judicial custody by a local court on June 17, a day after the Central Bureau of Investigation filed its first chargesheet in the funds diversion case. The arrest marks a new phase in a probe that alleges the former chief executive siphoned money from three CREST accounts maintained with IDFC First Bank’s branch in Sector 32.

Investigators allege that during Srivastava’s tenure as CEO, unauthorised transactions moved the funds into shell companies, which were then used to conceal the diversion of assets. The alleged scheme involved the three accounts that were kept at the IDFC First Bank branch located in Sector 32, a well‑known financial hub in the city.

The CBI had lodged its chargesheet on June 16, detailing the alleged misuse of the accounts and the subsequent routing of the money to offshore entities. The following day, the agency presented the case before the court, which ordered Srivastava’s remand to judicial custody for further interrogation and to ensure the preservation of evidence.

The court’s decision to place Srivastava in judicial custody highlights the seriousness with which the matter is being treated, allowing investigators to question him without the constraints of police custody and to safeguard evidence.

The case is part of a series of high‑profile financial investigations that have emerged in recent years, drawing attention from both regulatory bodies and the public. While the exact volume of the diverted funds has not been disclosed, the allegations focus on the misuse of accounts that were reportedly held under the former CEO’s control.

Srivastava’s legal team has not issued any public statement. The matter will continue to be heard in the coming weeks, with the court likely to decide on further orders regarding bail or continued custody.

Source: Hindustan Times