Chandigarh: The investigation into the multi-crore bank fraud linked to government departments in Haryana has gathered momentum with the Central Bureau of Investigation (CBI) arresting a second senior IAS officer in connection with the case.
According to sources, 2000-batch IAS officer Pankaj Agarwal was taken into custody late Monday as part of the agency’s ongoing probe into the alleged diversion of hundreds of crores of rupees from accounts belonging to various government departments. The arrest comes after the earlier detention of another IAS officer, Ram Kumar Singh, in the same matter.
Investigators allege that funds were fraudulently transferred from bank accounts maintained by multiple Haryana government departments, as well as departments under the Chandigarh Administration, through a network involving bank officials and other individuals. The financial irregularities are estimated to run into hundreds of crores, making it one of the most significant alleged financial scams involving public funds in recent years.
The latest arrest is linked to transactions that reportedly took place during Agarwal’s tenure in key administrative positions. Investigators are examining the circumstances under which certain departmental bank accounts were opened and operated, along with the subsequent movement of funds to private entities that are suspected of being shell companies.
Officials probing the case believe that substantial amounts were transferred from government-linked accounts to firms that allegedly had no genuine business operations. These transactions are now under scrutiny as agencies attempt to trace the flow of money and identify beneficiaries.
Apart from his role in departments connected to agriculture and education, investigators are also examining whether procedural lapses or violations of financial guidelines enabled the alleged siphoning of public funds. Authorities are reviewing account-opening processes, approvals, and oversight mechanisms that were in place at the time.
The case has widened considerably over the past few months, with several senior bureaucrats reportedly under the scanner. Investigating agencies are examining records, financial documents, and communication trails to determine the extent of involvement of various officials and private entities.
Meanwhile, the Enforcement Directorate is conducting a parallel investigation focusing on alleged money laundering aspects linked to the fraud. Both agencies are working to establish the complete financial trail and recover misappropriated funds.
The arrests mark a significant development in the high-profile case, which has triggered concerns over financial governance and oversight within government institutions. Investigators indicate that further action may follow as the probe continues and additional evidence emerges.
