A day after filing its first chargesheet in the alleged misappropriation of Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST) funds, the Central Bureau of Investigation (CBI) on Wednesday arrested senior Indian Forest Service officer Navneet Srivastava, who was serving as Chief Executive Officer of CREST when the alleged fraud took place.
Srivastava was produced before a Special CBI Court in Chandigarh, which remanded him to three days of CBI custody.The arrest comes in connection with the alleged siphoning of funds from three CREST accounts maintained with IDFC Bank in Chandigarh. According to the CBI, the funds were fraudulently transferred to various shell companies and subsequently diverted for personal use by beneficiaries, causing a loss of around Rs 75 crore to CREST during Srivastava’s tenure as CEO.
The agency said Srivastava’s role emerged during the course of the investigation. It further alleged that a portion of the proceeds of crime was routed to the account of a private company in which Srivastava’s wife and a close relative were directors.
The allegations are being investigated as part of what the CBI described as a larger conspiracy involving public servants, bank officials and private entities.
The CBI had earlier arrested former CREST Project Director Sukhwinder Singh Abrol and accountant Sahil Kukkar in the case. Both have been chargesheeted and are currently in judicial custody.
The case relates to alleged irregularities in the handling of CREST funds deposited with IDFC Bank. The matter was initially investigated by the Economic Offences Wing of the Chandigarh Police before being transferred to the CBI.
On Tuesday, the agency filed its first chargesheet before the Special CBI Court against 13 accused persons. Those named include five officials of the private bank, two public servants associated with CREST, two shell entities along with three of their partners or directors, and one private individual.
According to the chargesheet, the accused entered into a criminal conspiracy to siphon off public funds through unauthorised transactions and diversion of money to shell companies.
The alleged fraud came to light after discrepancies were detected in CREST’s bank accounts, triggering an investigation into the movement of funds and the role of officials responsible for overseeing the finances.
CBI officials said further investigation is underway to trace the money trail, identify additional beneficiaries and ascertain the role of other persons involved in the alleged diversion of funds. The agency is also examining financial transactions linked to companies that allegedly received the diverted funds and the manner in which the money was subsequently utilised.