The Haryana government has placed two Indian Administrative Service officers under immediate suspension following an investigation into a massive banking fraud totaling 748 crore rupees. Pradeep Kumar, a 2011-batch officer, and Ram Kumar Singh, from the 2012-batch, faced disciplinary action on Wednesday night through orders issued by Chief Secretary Anurag Rastogi. While the formal suspension orders did not explicitly state the reasons for the move, official sources have confirmed that the decision is directly linked to a probe into the alleged misappropriation of government funds involving several private sector banks. Both officers were promoted to the IAS from the state civil service and held significant administrative positions during the periods when the financial irregularities were reported to have occurred.
Scrutiny of Urban Local Bodies and Pollution Board
The investigation centers on a multi-layered web of financial fraud that was uncovered in phases between July 2025 and February 2026. Pradeep Kumar served as the member secretary of the Haryana State Pollution Control Board from August 2022 until December 2025, a tenure that is now being meticulously examined regarding the board’s banking transactions. Similarly, Ram Kumar Singh held the position of Panchkula municipal corporation commissioner from July 2025 to January 2026. Authorities believe that during these specific periods, significant misappropriation of public funds took place within the urban local body and the pollution board. Prior to their suspension, Kumar was serving as the director of state transport while Singh was the special secretary for revenue and additional CEO of the Panchkula Metropolitan Development Authority.
Illegal Diversion of Funds into Shell Companies
Details of the scam reveal that approximately 597 crore rupees were embezzled through a scheme involving IDFC First Bank and AU Small Finance Bank. Funds that were intended to be placed in fixed deposits for various government departments were instead diverted into shell companies, including an entity known as Swastik Desh Projects. These siphoned funds were allegedly utilized for the acquisition of luxury assets and real estate investments. A second component of the fraud involves approximately 158 crore rupees at Kotak Mahindra Bank. In this instance, officials at the Panchkula Municipal Corporation are alleged to have used forged seals and signatures to open unauthorized accounts and prematurely liquidate fixed deposits. The discrepancies first became apparent when departments attempted to verify their balances or close accounts, only to find forged bank statements.
Legal Framework and Administrative Consequences
The state government invoked Rule 3(1)(a) of the All India Services (Discipline and Appeal) Rules, 1969, to justify the suspensions. This regulation allows the government to sideline a member of the service when disciplinary proceedings are contemplated or pending and the nature of the charges warrants such action. During their suspension, both officers will be stationed at the office of the Haryana Chief Secretary in Chandigarh and will receive a subsistence allowance as per the established rules. The investigation gained significant momentum in March 2026 following the arrest of several key conspirators. As a direct result of these findings, the Haryana government has already moved to de-empanel the private banks involved in the scandal. The state continues to probe the extent of the collusion between administrative officials and bank representatives in this extensive embezzlement case.
