Chandigarh: In a major administrative crackdown in the high-profile ₹590 crore financial scam in Haryana, the state government has dismissed Haryana Power Generation Corporation Limited (HPGCL) Chief Financial Officer Amit Dewan from service. In its order, the government termed the case as one of “blatant corruption, gross misconduct, and abuse of official position,” stating that his continuation in service would be detrimental to public interest and institutional discipline.
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Dismissal Follows Arrest in High-Value Fraud Case
The action comes after Dewan’s arrest on March 18, 2026, in connection with the case, with investigating agencies continuing to unravel the wider network involved. The case revolves around the alleged diversion of government funds through multiple bank accounts and fraudulent financial transactions.
Investigations have revealed that accounts in IDFC First Bank and AU Small Finance Bank were used as part of the scheme. It is alleged that funds from government-linked accounts were siphoned off and routed through various accounts to obscure the actual money trail.
According to the government order, the accused official misused his position to conspire with bank officials and external entities in orchestrating a coordinated fraud. The operation allegedly involved forged financial approvals, fake documentation, and layered transactions designed to move funds across multiple channels. This not only caused significant financial loss to the public exchequer but also undermined the credibility of administrative systems.
Chandigarh Funds Also Under Scanner
Investigating agencies have indicated that the scam extended beyond Haryana government accounts, with approximately ₹170 crore allegedly diverted from various departments of the Chandigarh Administration using similar methods. This brings the total estimated size of the scam to over ₹590 crore, making it one of the largest financial frauds in recent years in the region.
So far, more than 20 individuals have been arrested in connection with the case. These include bank officials, government employees, private businessmen, and real estate-linked individuals. Investigators have found that the accused used shell entities and fictitious organisations to layer transactions and complicate the tracking of funds.
Analysis of Call Detail Records (CDR) and interrogation findings suggest that Dewan was in constant contact with other accused during the execution of the alleged conspiracy. One key transaction cited in the investigation claims that he received an illegal payment of ₹50 lakh on January 6, 2026, further strengthening suspicions about his direct involvement.
CBI Probe to Trace Money Trail and Beneficiaries
The government order also noted the challenges in ensuring a fair departmental inquiry, given Dewan’s senior position. It highlighted concerns that subordinates might hesitate to testify freely, and there was a significant risk of evidence being tampered with or destroyed.
Considering these exceptional circumstances, the government invoked relevant provisions to dismiss him from service without a formal departmental inquiry or show-cause notice. Officials maintained that this step was necessary to safeguard public interest, maintain transparency, and uphold institutional integrity.
Given the scale of the scam, involvement of senior officials, and complex interlinked banking transactions, the investigation has already been handed over to the Central Bureau of Investigation (CBI). Parallel financial probes are also underway to trace the entire money trail and identify additional beneficiaries of the fraud.
