New Delhi: The Central Bureau of Investigation (CBI) has strongly opposed the bail application of suspended IAS officer Pankaj Agarwal, accusing him of playing a crucial role in the alleged Rs 657 crore Haryana government funds scam. The agency told the CBI Special Court in Haryana that Agarwal acted as a close associate of the alleged mastermind, Ribhav Rishi, and received monetary as well as “unethical” benefits in return for facilitating illegal financial transactions.
According to the CBI, Agarwal’s involvement surfaced in two separate government departments under his charge, where he allegedly approved the opening of bank accounts in violation of the Haryana Finance Department’s prescribed norms, paving the way for diversion and misappropriation of public funds.
CBI Details Alleged Role During Education Department Posting
In its reply opposing bail, the CBI outlined a sequence of events beginning with Agarwal’s tenure as Principal Secretary, School Education, from December 10, 2024, to June 16, 2025.
The agency stated that within a week of assuming office, IDFC First Bank, Sector-32, Chandigarh, submitted a proposal dated December 17, 2024, seeking permission to open a bank account for the Haryana School Shiksha Pariyojna Parishad (HSSPP).
According to the investigation:
- Agarwal marked the proposal on December 19, 2024 for processing.
- He approved the account on December 31, 2024.
- He also sanctioned the transfer of Rs 100 crore from an existing Kotak Mahindra Bank account into the newly opened IDFC First Bank account.
The CBI argued that the account was opened without any genuine administrative requirement and in direct violation of Finance Department guidelines.
Read also: Suspended Haryana IAS Pankaj Agarwal Seeks Bail in ₹657 Crore IDFC First Bank Scam
Rules Allegedly Ignored
The investigating agency alleged that no competitive process was followed before selecting IDFC First Bank.
According to the CBI:
- No quotations were invited from empanelled banks.
- The proposal relied solely on the claim that IDFC First Bank offered a higher interest rate.
- No comparative analysis of interest rates was conducted.
- The transfer exceeded the prescribed investment ceiling.
The agency pointed out that while the permissible investment limit in IDFC First Bank was Rs 50 crore, Agarwal approved the transfer of Rs 100 crore, violating existing financial norms.
Fraudulent Transactions Worth Hundreds of Crores
The CBI further informed the court that the account witnessed large-scale fraudulent transactions after its opening.
According to the agency:
- 101 fraudulent debit transactions worth Rs 182.93 crore were carried out.
- 33 fraudulent credit transactions amounting to Rs 132.39 crore were recorded.
- The net alleged misappropriation stood at Rs 50.54 crore.
The agency alleged that these transactions formed part of a larger conspiracy to siphon off government funds.
Second Alleged Irregularity After Transfer to Agriculture Department
The CBI alleged that similar irregularities occurred after Agarwal took charge as Principal Secretary, Agriculture & Farmers Welfare on June 20, 2025.
As Chairman of the Haryana State Agriculture Marketing Board (HSAMB), Agarwal allegedly facilitated another account opening at the same branch of IDFC First Bank.
According to the agency, although a proposal dated May 21, 2025, had remained pending, it was revived following Agarwal’s intervention on July 1, 2025, processed the same day, and the account was officially opened on July 10, 2025 in the name of the Haryana Marketing Development Fund.
The CBI claimed there was no administrative necessity for opening another account since HSAMB was already operating multiple bank accounts.
Rs 10 Crore Withdrawn Using Cancelled Cheque
The agency alleged that on January 14, 2026, an amount of Rs 10 crore was fraudulently withdrawn from the HSAMB account using a cancelled cheque.
According to the CBI, the money was transferred in favour of:
- M/s SRR Planning Gurus Pvt Ltd
- M/s Mannat Contractors
Investigators claimed they have recovered evidence indicating prior communication between Agarwal and alleged mastermind Ribhav Rishi relating to this transaction.
CBI Alleges Close Association With Ribhav Rishi
The investigating agency also alleged that Agarwal maintained close personal contact with Ribhav Rishi even after Rishi had been removed from his position at IDFC First Bank.
The CBI submitted before the court that Agarwal was fully aware of the alleged conspiracy to divert Haryana government funds through fraudulent transactions but continued to facilitate the process.
According to the agency, Agarwal repeatedly received “pecuniary and other advantages” as quid pro quo for supporting and failing to prevent the diversion of government money.
IAS Officer Claims Innocence
Mr Agarwal, who was arrested on June 22 and subsequently placed under suspension, has denied all allegations.
In his bail application, the IAS officer claimed:
- He never demanded or accepted any bribe.
- His role was limited to granting administrative approvals based on files submitted by subordinate officers.
- There is no direct evidence linking him to the alleged fraud.
However, the CBI disputed these claims, alleging that Agarwal pressured subordinate officers to alter official notings and process files in favour of opening the bank accounts at IDFC First Bank.
Court Yet to Decide Bail Plea
The CBI has urged the Special Court to reject Agarwal’s bail application, arguing that the evidence collected so far demonstrates his active role in facilitating financial irregularities across multiple departments.
The court is expected to decide the bail plea after considering submissions from both the prosecution and the defence.
Read also: Haryana Suspends IAS Officer Pankaj Agarwal After CBI Arrest in ₹657-Crore IDFC First Bank Scam
