Chandigarh, March 31 -- The Haryana government has decided to seek an investigation by the Central Bureau of Investigation (CBI) into the alleged fraudulent transactions and discrepancies amounting to approximately Rs 748 crore of government department and public sector enterprise funds, according to people in know of the matter. The public money was allegedly misappropriated and embezzled by erstwhile and serving employees of private sector banks. Three such private sector banks - the IDFC First Bank, AU Small Finance Bank and Kotak Mahindra Bank - were under the scanner of Haryana anti-corruption bureau (ACB) following the registration two first information reports. A number of state officials, private individuals, former and serving bank have been arrested and are being investigated. Officials said that the sensing the gravity and the magnitude of the scam, the state government decided that a federal agency having the ability to investigate economic offences and financial crimes was best suited to carry out the probe. The state government has made a reference under section 6 of the Delhi Special Police Establishment (DSPE) Act granting its consent for extending the power and jurisdiction of the CBI to Haryana for the investigation of the case to the department of personnel and training of the central government, said officials privy to the development. The Centre after seeking the concurrence of the CBI will extend its powers and jurisdiction to the state for investigations of these cases. "The two FIRs - number 4 of February 23, 2026 and number 5 of March 24, 2026 - registered by Haryana ACB will be transferred to the CBI. The central agency will register a regular case (RC), the equivalent of and FIR, on the basis of ACB FIRs,'' said an official. The ACB had on February 23 registered an FIR against former employees of IDFC First bank under Section 13(2) of the Prevention of Corruption Act which provided for punishment in cases of criminal misconduct by a public servant. The ACB has also applied several provisions of the Bharatiya Nyaya Sanhita (BNS), including Section 316(5) (criminal breach of trust by a banker or agent); Section 318(4) (cheating); Sections 336(3), 338, and 340(2) (forgery and using forged documents); and Section 61(2) (criminal conspiracy). While the accused are private bank employees, they fall under the ambit of anti-corruption laws. In 2016, the Supreme Court ruled that bank officials are public servants for the purpose of prosecution under the PC Act. The apex court held that by virtue of Section 46A of the Banking Regulation Act, 1949, such prosecutions are legally maintainable. This ensures that even officials in the private banking sector can be held accountable for the mishandling of public funds. The March 24 FIR registered by ACB pertained to financial irregularities and fund mismatch involving deposits made by Panchkula Municipal Corporation deposits. Provisions of Prevention of Corruption Act, and sections 61, 316(5), 318(4), 336(3), 338, 340 of BNS were invoked. As per the FIR, 16 fixed deposits worth Rs 145.03 crore (maturity value Rs 158.02 crore) were maintained with the Kotak Mahindra bank. 11 fixed deposits worth Rs 59.57 crore matured on February 16, 2026. However, bank records and Panchkula MC records did not match, indicating discrepancies. The Supreme Court had in 2016 ruled that officials of a bank are public servants for the purpose of prosecution under the Prevention of Corruption Act. Justice Ranjan Gogoi while concurring with the conclusions arrived by fellow judge, Prafulla C. Pant said the accused respondents (bank officials) are public servants for the purpose of the Prevention of Corruption Act by virtue of the provisions of section 46 A of the Banking Regulation Act, 1949, and the prosecutions launched against the accused respondents were maintainable in law. Detecting deviations in the operation of bank accounts and management of fixed deposits, the Haryana finance department in a 2025 compliance directive, had asked departments and public sector enterprises (PSEs) to conduct an internal audit of their bank accounts and fixed deposits. The finance department had raised concerns over discretionary handling of bank accounts and fixed deposits stating it can weaken transparency and institutional control over public funds. Citing violations of guidelines regarding the operation of bank accounts and management of fixed deposits, the finance department said key deviations included opening accounts without adhering to prescribed proximity norms, selection of banks and branches based on personal preferences, and indications of favouritism in the placement of fixed deposits. The finance department specifically noted that several Haryana government establishments located in Panchkula opened bank accounts in Chandigarh without valid justification, terming the practice contrary to laid-down instructions. It said such actions compromise financial discipline, transparency and fairness in the management of public funds. The FD had asked the departments and PSEs to examine whether accounts were opened in accordance with the FD guidelines, whether necessary approvals were obtained and whether any corrective action was needed....