The Centre has ordered a Central Bureau of Investigation (CBI) probe into the two biggest bank frauds in Chandigarh’s history — the Rs 117-crore Chandigarh Smart City Limited (CSCL)-Municipal Corporation Chandigarh (MCC) scam and the Rs 83-crore Chandigarh Renewable Energy Science and Technology Promotion Society (CREST) fraud — both perpetrated through the same IDFC First Bank branch at Sector 32, Chandigarh.The Ministry of Home Affairs (MHA) has formally directed the CBI to accept the transfer of FIR No. 02/2026 and FIR No. 03/2026 — both registered at the Economic Offences Wing (EOW), Chandigarh — and take necessary action in the matter.Even as the transfer process got underway, the CBI registered a fresh FIR and began its probe into the CREST fraud case, making its first two arrests — Amit Dewan, Director (Finance) of Haryana Power Generation Corporation Limited (HPGCL), and businessman Vikram Wadhwa.A copy of the order is with The Tribune.Issued by Under Secretary to the Government of India Prabhat Nigam, the MHA order states: “The no objection of the competent authority of the Ministry of Home Affairs is granted for transfer of the cases registered under FIR No. 02/2026 and FIR No. 03/2026 in Economic Offences Wing, Chandigarh to Central Bureau of Investigation.”The order has been issued on the recommendation of Punjab Governor and Chandigarh Administrator Gulab Chand Kataria, who had written to Union Home Minister Amit Shah and Union Home Secretary Govind Mohan requesting the transfer of both cases to the CBI. The Tribune had exclusively reported Governor Kataria’s recommendation on May 1.The MHA order, addressed to the Director, CBI, New Delhi, forwards the Chandigarh Administration’s letter, as an enclosure, while directing the CBI to “accept the transfer of the above cases and take necessary action in the matter.”What it meansThe CBI’s entry into the Rs 200-crore-plus twin fraud cases — both involving the same IDFC First Bank, Sector-32 branch, the same core accused and the same modus operandi — marks a decisive escalation in what is already the largest financial fraud probe in Chandigarh’s history.Crucially, the CBI is already investigating the related Rs 550-crore Haryana government funds scam at IDFC First Bank, in which the same shell companies — RS Traders, CAPCO Fintech Services and Swastik Desh Project — were deployed to siphon money from eight Haryana government departments. The identical shell companies and overlapping accused across both cases point to a single, organised criminal network that systematically targeted government funds across the Tricity and Haryana.With the Chandigarh cases now joining the Haryana probe under the CBI’s pan-India jurisdiction, investigators will for the first time be able to pursue a consolidated, multi-jurisdictional money trail — parts of which are believed to extend to other states and possibly foreign countries.The fresh CBI FIR and the first arrests of HPGCL Director (Finance) Amit Dewan and businessman Vikram Wadhwa are being seen as the beginning of the agency’s wider crackdown into the organised network behind the frauds.The twin fraudsFIR No. 02 (March 9, 2026) relates to the CSCL-MCC fraud of over Rs 117 crore. When CSCL was wound up in March 2025, the accused exploited the transition to siphon funds through a hidden bank account secretly opened at the Sector 32 branch in August 2024.The stolen money was routed to shell companies. A forged bank statement was then fabricated to show all balances had been transferred to MCC and converted into 11 fictitious fixed deposits of Rs 116.84 crore with fake FDR numbers. The fraud surfaced in February 2026 — not through any internal audit — but after media reports exposed similar irregularities in Haryana.FIR No. 03 (March 12, 2026) relates to the CREST fraud of Rs 83.04 crore. A reconciliation of CREST’s bank statements at the same branch revealed approximately 300 unauthorised transactions, with a principal shortfall of Rs 75.16 crore and interest loss of Rs 7.88 crore.Bank statements sent periodically to CREST from official email IDs of bank officials had been systematically forged to conceal the fraud. Stolen funds were converted into jewellery, bullion, cash and real estate.Arrests, suspensionsChandigarh Police have so far arrested 14 persons across both cases, including former IDFC First Bank branch manager Ribhav Rishi, bank officials Abhay Kumar and Seema Dhiman, CSCL CFO Nalini Malik, CREST Project Director Sukhwinder Abrol, and a network of shell company operators, real estate agents and private persons.The CBI has now also arrested HPGCL Director (Finance) Amit Dewan and businessman Vikram Wadhwa after registering a fresh FIR linked to the CREST fraud case.However, several senior functionaries of CSCL, MCC and CREST remain under the scanner without arrest. Former CSCL Chief General Manager and MC retired Chief Engineer NP Sharma was grilled for several days after the accused’s disclosures pointed to his role, but he has not been arrested.In a separate executive action, the Centre has already suspended Navneet Kumar Srivastava, an Indian Forest Service (IFS) officer and former CREST CEO, on Governor Kataria’s recommendation in connection with the CREST fraud probe.A special CAG audit and full account reconciliation remain ongoing.