India, June 30 -- The Central Bureau of Investigation (CBI) has arrested two former banking executives, Shamim Dar, the then area head of IDFC First Bank, and Charanjeet Singh Randhawa, the then branch manager of AU Small Finance Bank's Mohali branch, for their alleged involvement in a Rs.504-crore financial fraud involving Haryana government funds.

The arrests, made on Monday, come after investigators uncovered incriminating evidence showing that both officials abused their positions to facilitate the opening of unauthorised bank accounts and execute fraudulent transactions. These accounts were designed to divert surplus public funds meant for secure investments.

Both accused were produced before a special CBI court in Panchkula as the...