The ED initiated its probe based on an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, under provisions of the Bharatiya Nyaya Sanhita, 2023 and the Prevention of Corruption Act, 1988, against unknown bank officials. The FIR alleged embezzlement of around Rs 145 crore belonging to Municipal Corporation Panchkula through a well-organised criminal conspiracy.