The Haryana government has dismissed the Finance and Accounts Controller of the Haryana State Agricultural Marketing Board over his alleged involvement in a Rs 10 crore fraud linked to the wider IDFC First Bank scam, invoking constitutional provisions to remove him without a regular departmental inquiry.
Dismissal Order Cites Financial Conspiracy
The dismissal order was issued on April 30 under Article 311(2)(b) of the Constitution of India. The order describes a large scale financial conspiracy involving manipulation of official procedures, fraudulent banking operations and fictitious financial transactions aimed at siphoning government funds into shell entities and accounts allegedly controlled by the accused.
The official dismissed is Rajesh Sangwan, who had been suspended after his arrest on March 14 by the State Vigilance and Anti Corruption Bureau. An FIR had already been registered on February 23, and the Central Bureau of Investigation later registered a case on April 8 and joined the probe.
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Account Opening and Rs 10 Crore Transfer Under Scrutiny
Sangwan was responsible for financial supervision and for matters related to the opening and operation of HSAMB bank accounts. The proposal to open an HSAMB account with IDFC First Bank was initiated on July 2, 2025 by Shamim Dar, Area Head of the Government Banking Group, Chandigarh. The account opening form was completed on July 7 and the account was formally opened on July 10.
At that time, Ribhav Rishi, described in the material as the alleged mastermind of the scam, was serving as branch manager. The dismissal order states that Sangwan forwarded the proposal file with a recommendation to open the savings account without conducting due diligence or attempting to secure the best interest rates, since no quotations were obtained from empanelled banks. A fraudulent transaction of Rs 10 crore was then allegedly carried out on January 14, 2026 through cheque number 000006, with the money split into two RTGS transfers of Rs 9.75 crore to SRR Planning Gurus Pvt Ltd and Rs 25 lakh to Mannat Contractors.
Procedural Lapses and Wider Crackdown
Sangwan was one of the authorised signatories of the account and was allegedly informed about the transaction through a call confirmation made by Seema Dhiman, an employee of IDFC First Bank and a co accused in the case. Despite that, the order says he did not act on the fraudulent transfer on January 14 and took no action even after discrepancies were identified during reconciliation of bank statements on February 6, 2026.
Investigators also cited statements from co accused, including Ribhav Rishi and Abhay Kumar, alleging that Sangwan received substantial illegal gratification. Call detail record analysis showed that he remained in constant contact with key accused during the period of the offence. The order also points to serious procedural lapses, including failure to secure a cancelled cheque later allegedly used in the fraud and allowing a cheque book to be taken away by an external individual without ensuring its return or maintaining control.
Citing the organised nature of the conspiracy, the involvement of multiple external actors, the likelihood of witness influence and the risk of evidence tampering, the state government concluded that a regular departmental inquiry was not reasonably practicable. The action against Sangwan is described as part of a wider crackdown linked to the same scam. Naresh Kumar of the Development and Panchayats Department was dismissed on April 23 in a similar manner, while Randhir Singh, Chief Accounts Officer in the education department, was dismissed in another fraud case involving Rs 54 crore.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
