Two Indian Administrative Service officers have been placed under immediate suspension by the Haryana government amid an ongoing probe into an alleged ₹748 crore banking fraud involving multiple private sector banks.
Pradeep Kumar of the 2011 batch and Ram Kumar Singh of the 2012 batch were suspended through separate orders issued by Chief Secretary Anurag Rastogi. While the orders did not specify reasons, officials indicated that the action is linked to investigations into the alleged misappropriation of government funds through banks including IDFC First Bank, AU Small Finance Bank, and Kotak Mahindra Bank.
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Officials Under Scrutiny Over Financial Irregularities
Pradeep Kumar served as member secretary of the Haryana State Pollution Control Board between August 31, 2022 and December 10, 2025, a period now under examination for banking transactions linked to the board. Ram Kumar Singh held the position of commissioner of the Panchkula Municipal Corporation from July 10, 2025 to January 28, 2026, during which the alleged diversion of funds took place.
Before their suspension, Kumar was serving as director of state transport, while Singh was posted as special secretary in the revenue department and additional chief executive officer of the Panchkula Metropolitan Development Authority. During the suspension period, both officers will receive subsistence allowance and will be stationed at the office of the Haryana Chief Secretary in Chandigarh.
The suspension has been carried out under provisions of the All India Services (Discipline and Appeal) Rules, 1969, which allow such action when disciplinary proceedings are contemplated or pending.
Multi-Layered Fraud Across Banks and Departments
Investigators have described the case as a complex financial fraud involving the diversion of government funds through multiple channels. The largest component, estimated between ₹590 crore and ₹597 crore, relates to funds earmarked for fixed deposits across various departments, including the Haryana State Pollution Control Board. These funds were allegedly siphoned into shell entities such as Swastik Desh Projects and diverted towards luxury purchases and real estate.
A separate fraud, estimated between ₹150 crore and ₹158 crore, has been linked to Kotak Mahindra Bank. In this instance, officials at the Panchkula Municipal Corporation allegedly used forged seals and signatures to open unauthorised accounts and prematurely liquidate fixed deposits.
The irregularities came to light when government departments attempted to verify account balances or close fixed deposits and found discrepancies including forged bank statements and missing funds.
Probe Intensifies as Arrests and Action Follow
The investigation unfolded in stages between July 2025 and February 2026, with discrepancies initially detected by departments including urban local bodies and development and panchayats. The case gathered pace in March 2026 following the arrest of key individuals suspected to be involved in the conspiracy.
Subsequently, the Haryana government moved to de-empanel the private sector banks linked to the transactions under scrutiny. Authorities continue to examine financial records and institutional roles as part of the broader probe into the alleged embezzlement.
