Kumar's decision came after a high-level meeting on the case in which government money was allegedly syphoned off by an NGO in Bhagalpur and some nationalised banks and government officials were also suspects.
"The CM gave an order (to the state authorities) to hand over cases registered in the matter to the CBI for [an] inquiry," an official statement said.
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The cases were being investigated by the economic offences unit (EOU) of the Bihar Police.
The state police on Thursday issued a lookout notice against the secretary of the accused NGO, 'Srijan' and her husband for allegedly swindling over Rs 950 crore of government money in Bhagalpur.
"The lookout notice against NGO secretary Priya Kumar and her husband Amit Kumar has been sent to all airports of the country to prevent them from leaving the country," Additional Director General (ADG) of Police (Headquarters) S K Singhal said.
Priya Kumar is the daughter-in-law of Manorama Devi, the founder of the NGO.
Manorama Devi died early this year after which the NGO was being run by Priya Kumar and Amit Kumar, son of Manorama Devi, officials said.
Singhal said that the bank account of the wife of arrested District Welfare Officer Arun Kumar has been frozen in Bhagalpur.
Officials said during a raid, over Rs 1.50 crore was allegedly found deposited in that account.
The ADG said 10 arrests have been made so far in connection with the scam.
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