The Central Bureau of Investigation (CBI) has arrested senior Indian Forest Service officer Navneet Kumar Srivastava, former Chief Executive Officer of the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST), in connection with the Rs 83-crore fraud case involving IDFC First Bank. This marks the first arrest of a senior Chandigarh Administration officer in the case.
Arrest and Court Proceedings
Srivastava, who was earlier suspended by the Centre on the recommendation of Punjab Governor and Chandigarh Administrator Gulab Chand Kataria, was produced before the Special CBI Court in Chandigarh on June 17, 2026. The court remanded him to three days of CBI custody for further interrogation.
Details of the Fraud
According to a senior CBI official, funds parked in three CREST bank accounts were fraudulently siphoned into various shell companies and later converted for personal use by beneficiaries. The estimated loss to the Chandigarh Administration-run society is nearly Rs 75 crore during Srivastava's tenure. Investigators also found that part of the proceeds was diverted to a private company where Srivastava's wife and a close relative were directors.
The fraud came to light after reconciliation of bank accounts revealed around 300 unauthorised transactions. The principal shortfall was Rs 75.16 crore, with an additional interest loss of Rs 7.88 crore, totaling Rs 83.04 crore. Forged bank statements were allegedly sent from official email IDs of bank officials to conceal the fraud.
Larger Scam Network
The CREST case is part of a larger IDFC First Bank scandal that includes the Rs 117-crore Chandigarh Smart City Limited (CSCL)-Municipal Corporation fraud and the Rs 550-crore Haryana government funds scam. Investigators have noted common shell companies, overlapping accused, and similar modus operandi across these cases.
Previous Arrests and Charges
Former CREST Project Director Sukhwinder Singh Abrol and accountant Sahil Kukkar were arrested earlier and have been charge-sheeted. The CBI recently filed its first charge sheet against 13 accused, including five IDFC First Bank officials, two CREST public servants, two shell entities with their partners/directors, and one private individual. All are in judicial custody.
The arrest comes a day after businessman Vikram Wadhwa received default bail in the Chandigarh Smart City case but remains in jail due to his involvement in the CREST and Haryana funds scams.
Next Steps
With Srivastava in custody, the CBI will focus on the decision-making process within CREST, monitoring of public funds, approvals for banking operations, and the flow of money to shell companies. The agency aims to establish accountability at higher administrative levels and trace the ultimate beneficiaries of the diverted funds.
