CBI Arrests Second Haryana IAS Officer in ₹657 Crore Bank Scam Probe

The CBI arrests Haryana IAS officer development has intensified scrutiny of the alleged ₹657 crore bank scam involving government funds in Haryana. The Central Bureau of Investigation (CBI) has arrested IAS officer Pankaj Agarwal, making him the second IAS officer to be taken into custody in connection with the high-profile case.

The arrest marks another major step in the investigation into the alleged diversion of public funds through accounts maintained with private banks. Investigators believe the scam involved officials, bank executives, and other individuals who allegedly facilitated unauthorized transactions from government department accounts.

CBI Arrests Another Haryana IAS Officer

The CBI arrested Pankaj Agarwal, a 2000-batch IAS officer, as part of its ongoing investigation into the multi-crore fraud case. At the time relevant to the allegations, Agarwal held senior positions in Haryana government departments, including agriculture and education-related assignments.

According to investigators, the arrest follows months of inquiry into suspicious transactions involving government funds that were allegedly transferred from official accounts into entities suspected of being shell companies or unauthorized beneficiaries.

The agency is examining whether administrative approvals, account operations, and financial oversight mechanisms were misused to facilitate the movement of funds.

Who Is Pankaj Agarwal?

Pankaj Agarwal is a senior IAS officer who has served in several important roles within the Haryana administration.

Investigators allege that during his tenure in departments linked to agriculture and education, substantial sums of money were transferred through accounts that are now under scrutiny. Authorities are examining whether established financial procedures were bypassed when these accounts were opened and operated.

The CBI has not publicly disclosed all details of the evidence collected so far, but officials indicate that financial records and transaction trails form a significant part of the investigation.

Details of the ₹657 Crore Bank Scam

The alleged scam centers on the diversion of government funds from accounts belonging to multiple Haryana government departments and certain Chandigarh administration entities.

Investigators claim that funds were moved through accounts maintained at private banking institutions, including IDFC First Bank and AU Small Finance Bank. The CBI estimates the total loss at approximately ₹657 crore, while other investigating agencies have reported slightly different figures based on their assessments.

The case is considered one of the largest alleged financial frauds involving government accounts in Haryana in recent years.

Authorities believe that a network of bank officials, government employees, and private entities may have played roles in facilitating the transactions.

Allegations Against the IAS Officer

According to reports, investigators are examining allegations that funds from government-controlled accounts were transferred in violation of established financial guidelines.

The allegations include:

Opening and operating accounts outside prescribed procedures.
Unauthorized transfer of government funds.
Diversion of money to suspected shell companies.
Failure to follow financial oversight norms.
Possible misuse of official authority.

The investigation remains ongoing, and the allegations are yet to be tested in court.

Previous Arrests in the Case

Before the arrest of Pankaj Agarwal, the CBI had already arrested suspended IAS officer Ram Kumar Singh in connection with the same scam.

Singh, a 2012-batch IAS officer, was accused of involvement in the alleged diversion of funds linked to municipal and government accounts. A court subsequently remanded him to CBI custody as investigators pursued the money trail.

The arrests indicate that investigators are expanding their focus beyond bank officials and private individuals to include senior government functionaries.

Investigation Expands Further

The CBI’s investigation continues to widen, with authorities reportedly examining the role of several officials connected to departments whose funds were allegedly diverted.

Earlier, the Haryana government granted permission for the questioning of multiple IAS officers as investigators sought to determine whether additional officials had knowledge of, or involvement in, the suspicious transactions.

Investigators are also reviewing: