In a significant administrative development in the alleged ₹590 crore bank fund diversion case, the Haryana government has suspended senior IAS officer Pankaj Agrawal following his arrest by the Central Bureau of Investigation (CBI). The suspension comes just days after the agency took him into custody in connection with an alleged fraud involving the diversion of government funds through accounts maintained with IDFC FIRST Bank and AU Small Finance Bank. Agrawal was arrested by the CBI on June 22 and produced before a court the following day, after which he was remanded to judicial custody. The case relates to the alleged misappropriation of government funds and financial irregularities involving accounts operated by various Haryana government departments.
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Violations of Financial Guidelines and Fund Transfers
According to the CBI, while serving in senior administrative positions in the School Education and Agriculture departments, Agrawal was allegedly associated with the opening of bank accounts belonging to the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agricultural Marketing Board (HSAMB) at the Sector-32 branch in Chandigarh in violation of the Finance Department’s prescribed guidelines. Investigators allege that government funds exceeding the permissible limits were subsequently transferred into these accounts, resulting in large-scale financial irregularities. The investigation was taken over by the CBI at the request of the Haryana government. During the probe, the agency examined banking records, financial documents, and transaction trails, leading to the identification of the alleged roles of several government officials, bank employees, and private individuals.
Multiple Chargesheets and Expanding Institutional Probes
So far, the CBI has filed chargesheets against 17 accused in the case. These include six officials of IDFC FIRST Bank and AU Small Finance Bank, three public servants from the Haryana government, two companies, and six private individuals. The agency has alleged that the operation of the government accounts and the transfer of funds were carried out in violation of established financial norms. Investigators are now tracing the complete flow of funds, identifying the ultimate beneficiaries, and examining digital banking records and other financial evidence to establish the extent of the alleged conspiracy. Officials believe the investigation is likely to uncover additional financial links as scrutiny of transactions continues.
In a related development, senior IAS officer R.K. Singh was also arrested earlier in connection with alleged financial irregularities involving the Municipal Corporation, Panchkula. Following the completion of his police remand, he too has been sent to judicial custody. His arrest indicates that the investigation extends beyond a single department and encompasses multiple government institutions and financial transactions.
Interlinked Investigations in the Chandigarh Union Territory
Apart from the Haryana case, the CBI has also taken over two other financial irregularity cases from the Union Territory of Chandigarh. These involve the Chandigarh Smart City Limited (CSCL) project and another case related to CREST Chandigarh. Chargesheets have already been filed in both investigations. In the Chandigarh Smart City case, the agency has chargesheeted five bank officials, one project official, and one private individual. In the CREST case, charges have been filed against five bank officials, two government officials, four private individuals, and two companies. A senior Indian Forest Service (IFoS) officer has also been arrested in connection with the CREST investigation.
Financial crime experts say strict compliance with banking procedures and financial control mechanisms is essential in safeguarding public funds. Weak institutional oversight can create opportunities for the diversion or misuse of government money. They note that large-scale financial crime investigations require not only tracing the movement of funds but also analysing decision-making processes, banking approvals, beneficiary networks, and digital financial records to establish accountability. The CBI has stated that it remains committed to tracing the complete trail of the allegedly misappropriated public funds and identifying every individual responsible. The suspension of Pankaj Agrawal marks one of the most significant administrative actions in the high-profile case so far, with further legal and departmental action expected as the investigation progresses.
