India, May 15 -- The Central Bureau of Investigation (CBI) on Thursday conducted searches at multiple locations in Chandigarh and Panchkula in a case of misappropriation of Haryana government funds by private sector banks IDFC First and AU Small Finance.

On April 8, the federal agency took over the probe into the alleged misappropriation of more than Rs.550 crore of Haryana government funds parked with IDFC First Bank and AU Small Finance Bank. A CBI spokesperson said the allegation is that certain officials of IDFC First Bank and AU Small Finance Bank, in connivance with Haryana officials working in various departments misappropriated government funds through fraudulent means.

The spokesperson said search operations were conducted at s...