CHANDIGARH/PANCHKULA - The Central Bureau of Investigation (CBI) conducted extensive searches across seven locations in Chandigarh and Panchkula on May 14th, as part of an intensifying inquiry into the alleged misappropriation of Haryana government funds. The agency reportedly seized critical financial records and digital evidence, aiming to unravel a network suspected of diverting public money.
The investigation centers on allegations that certain officials from IDFC First Bank and AU Small Finance Bank collaborated with public servants from various Haryana government departments. This alleged collusion facilitated the fraudulent diversion and misappropriation of government funds. So far, 16 individuals have been arrested in connection with the case.
Searches targeted residential premises, business establishments, jewelry showrooms, and the premises of suspected beneficiaries of the illicitly obtained funds. The recovered digital devices and financial documents are undergoing forensic examination, with investigators hoping to establish the full extent of the alleged scam and identify all involved parties.
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Bureaucratic Entanglements and Evolving Scope
The probe has extended to higher echelons of the state bureaucracy. The CBI has sought permission from the Haryana government to investigate the alleged role of five IAS officers, with a request for clearance to question three more potentially underway. This move suggests a belief that the network may extend beyond bank officials and private entities, implicating senior government functionaries.
Previously, the Haryana government had suspended two IAS officers, Ram Kumar Singh and Pardeep Kumar, in April, shortly before the CBI officially took over the investigation. The agency is reportedly seeking government approval to investigate these officers under Section 17A of the Prevention of Corruption Act, which requires prior sanction for inquiring into offenses alleged to have been committed by public servants.
Scale of Alleged Diversion and Previous Actions
The alleged fraud involves the misappropriation of funds totaling approximately ₹645 crore from numerous Haryana government departments and two schools. Specific amounts cited include over ₹169 crore from the Haryana State Pollution Control Board (HSPCB) and ₹50 crore from the Haryana Power Generation Corporation Limited (HPGCL), among others.
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The scam first surfaced in February when an official from the Haryana government's Development and Panchayats department sought to close an account. Initially investigated by Haryana's Vigilance and Anti-Corruption Bureau, the case was subsequently transferred to the CBI in April.
The Enforcement Directorate (ED) is also conducting a separate money-laundering inquiry into the matter. The ED has reportedly arrested two former IDFC First Bank employees, Ribhav Rishi and Abhay Kumar, accused of creating shell companies to launder the siphoned funds. Investigators believe that unauthorized accounts, potentially including those with Kotak Mahindra Bank in addition to IDFC First and AU Small Finance Bank, were used to route these large sums.
IDFC First Bank has stated that it has repaid ₹557 crore to the concerned state government departments, though the investigation continues.
