Punjab Newsline | Chandigarh
The troubles of Haryana Power Generation Corporation Limited (HPGCL) Finance Director Amit Diwan continue to mount as the Central Bureau of Investigation (CBI) has arrested him once again in connection with a ₹83 crore CREST scam in Chandigarh.
Diwan, who was earlier arrested in the ₹590 crore bank fraud case in Panchkula, was taken into custody by the CBI from Ambala Jail through a production warrant and produced before a special CBI court in Chandigarh. The court granted a four-day remand for further interrogation, and he is now scheduled to be produced again on May 18.
Key links between accused and financial irregularities
During the investigation, the agency also found that ₹75 lakh linked to CREST funds was transferred to the account of Vikram Wadhwa, who is alleged to be the mastermind of the Smart City and CREST scams.
The CBI has also secured a two-day remand of Wadhwa for questioning in the case.
Alleged nexus with bank official
According to investigators, Amit Diwan had a close nexus with former IDFC Bank manager Ribhav Rishi. Officials allege that Rishi facilitated the diversion of funds from CREST accounts for Diwan’s benefit. The agency suspects that cash payments ranging from ₹25 lakh to ₹50 lakh were repeatedly delivered to Diwan through intermediaries.
Investigators are now examining the bank accounts and financial transactions of both accused to trace how often government funds were siphoned off and where the money was ultimately used.
IDFC Bank has also come under scrutiny in the probe due to its involvement in the fixed deposit accounts linked to the scandal.
Recruitment of “delivery boys” for cash movement
The investigation has further revealed that two youths were allegedly hired specifically to transport cash and act as delivery agents for moving government funds. The CBI is now searching for both individuals.
Wider financial network under scanner
In a major development, multiple jewellers in Chandigarh have also come under the agency’s scanner. Acting on suspicion of financial links, the CBI recently conducted raids at nearly a dozen jewellery showrooms, including those of traders Savan and Manik. Records of sales and bank transactions have been seized for examination.
Background of the scam
The Chandigarh Smart City and CREST scams involve alleged misappropriation of funds worth ₹116.84 crore and ₹83 crore respectively, which were originally kept as fixed deposits in IDFC Bank. Investigations suggest that accused officials, in collusion with private players, prematurely withdrew funds and diverted them through shell companies into real estate investments, with alleged bribes paid to public officials.
The case was initially uncovered by Chandigarh Police before being transferred to the CBI for a deeper probe.
Earlier arrest linked to suicide case
Amit Diwan was earlier arrested in a Panchkula bank fraud case on March 18. The case also involves the suicide of Finance Officer Balwant Singh of HPGCL, who jumped from the eighth floor of the Haryana Secretariat. In his suicide note, Singh accused Diwan of harassment and forcing him into taking the extreme step.
