In a major development in the ₹590 crore government funds fraud case, authorities have arrested a senior finance official of Haryana Power Generation Corporation Limited (HPGCL), intensifying the ongoing probe into one of the largest financial irregularities involving public money.
The arrest comes amid a widening investigation into alleged diversion of government funds through bank accounts and shell entities, with multiple arrests already made.
Senior official accused of collusion and bribery
The accused, identified as Amit Diwan, was serving as Director (Finance) at HPGCL when key financial decisions were taken.
According to investigators, he allegedly bypassed established government procedures and colluded with the main accused, facilitating the fraudulent diversion of funds. Authorities have also alleged that he received illegal gratification in return for his role.
A local court has granted his three-day custody to the Anti-Corruption Bureau (ACB) for further interrogation.
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Fraud involved complex financial channels
Preliminary findings indicate that the fraud involved opening bank accounts in private banks and routing public funds through layered financial transactions.
Investigators say the accused used:
- Shell companies
- Forged financial instruments
- Multiple bank accounts
to divert funds linked to Haryana government departments.
The case is part of a larger ₹590 crore scam involving accounts linked to government schemes and departments, which came to light earlier this year.
Multiple arrests, wider conspiracy suspected
The investigation has already led to the arrest of several individuals, including:
- Key आरोपी Ribhav Rishi
- Abhay Kumar
- Swati Singla and Abhishek Singla
Officials, bank employees, and intermediaries have also been taken into custody for allegedly facilitating unauthorised transactions and forging records.
A Special Investigation Team (SIT) has been constituted to examine the case, with authorities suspecting a well-organised network involving government officials, bankers, and private entities.
Role of bank officials under scrutiny
Bank employees are also under investigation for allegedly:
- Processing fraudulent transactions
- Ignoring verification protocols
- Assisting in fund diversion
The fraud is linked to accounts in private banks, including those where government funds were parked and later siphoned off through suspicious transactions.
Investigation ongoing, more arrests likely
Officials have stated that the probe is still ongoing, with more arrests and revelations expected as investigators trace the money trail and examine financial records.
The case has raised serious concerns over financial oversight, internal controls, and collusion within public institutions, given the scale of funds involved.
Authorities are now focusing on uncovering the full extent of the conspiracy and ensuring accountability for all those involved.
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.
