20 October 2026
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Haryana ₹590 Crore Bank Fraud Probe Reaches Top Bureaucracy; CBI To Question 5 IAS Officers

The case involves alleged fraudulent transactions and diversion of government funds through IDFC FIRST Bank and AU Small Finance Bank.
Indian Masterminds Stories

Chandigarh: In a major development in the ₹590 crore banking fraud involving funds of several Haryana government departments, the Central Bureau of Investigation has received the state government’s go-ahead to question five senior IAS officers. The case involves alleged fraudulent transactions and diversion of government funds through IDFC FIRST Bank and AU Small Finance Bank.

According to highly placed sources, Haryana Chief Secretary Anurag Rastogi has cleared and forwarded the file related to the CBI’s request to interrogate certain senior bureaucrats whose departments or government bodies were allegedly affected by the fraud. The file is now with the office of Chief Minister Nayab Singh Saini for final approval.

The move marks a significant escalation in one of the biggest financial scandals involving public funds in Haryana, as the investigation now reaches the highest levels of the state bureaucracy.

CBI Probe Expands Beyond Officials and Bank Executives

The CBI formally registered an FIR on April 8, 2026, after the Haryana government handed over the investigation to the agency in view of the seriousness of the allegations.

So far, the agency has arrested 15 accused, including:

  • Four government officials, who have since been dismissed from service
  • Senior executives of private banks
  • Middlemen and private entities allegedly involved in routing public funds

Until recently, the investigation had focused on departmental officials and banking personnel. However, the request to question five IAS officers indicates that the probe is now examining possible administrative approvals, oversight failures and decision-making at the highest level.

Why CBI Requires Section 17-A Approval

Section 17-A of the Prevention of Corruption Act requires investigating agencies to obtain prior government approval before initiating an inquiry against a public servant for actions taken while discharging official duties.

The CBI has reportedly submitted a detailed dossier outlining:

  • Amounts allegedly siphoned from various state departments and public sector undertakings
  • File movement and approval records
  • Deviations from established financial procedures
  • Possible connivance or negligence by senior officers
  • Digital and audio evidence under forensic analysis

Sources say the names of senior bureaucrats surfaced during interrogations of arrested accused and through documentary evidence collected during the probe.

Audio Recordings and Documents Under Forensic Scrutiny

Investigators are also examining audio and digital recordings that allegedly contain conversations between accused persons and officials discussing:

  • Opening and operation of bank accounts
  • Transfer of government funds
  • Attempts to avoid regulatory detection

These recordings are being subjected to forensic examination and may form an important part of future interrogations.

What Is the ₹590 Crore Bank Fraud?

The scam is linked to deposits made by Haryana government departments and entities, including Haryana Power Generation Corporation Limited (HPGCL).

According to the CBI FIR, public funds were allegedly deposited in private banks in violation of financial norms and later diverted through shell companies and fictitious entities.

Among the firms named in the investigation are:

  • Swastik Desh Project
  • SRR Planning Gurus Private Limited
  • Cap Co Fintech Services
  • RS Traders
  • Other related entities and individuals

The CBI described the case as involving “fraudulent banking operations and fictitious transactions executed systematically to divert government funds.”

Senior IAS Officers Recently Shifted from Key Posts

Several senior IAS officers were recently moved out of influential positions amid the widening investigation.

Saket Kumar

Removed as Additional Principal Secretary to the Chief Minister. Additional charges as Commissioner, Development and Panchayat Department; Commissioner, Cooperation Department; and Managing Director of HPGCL were withdrawn.

Pankaj Agarwal

Shifted from Principal Secretary, Irrigation and Mining Department, to the Architecture Department.

Vineet Garg

Removed as Chairman of the Pollution Control Board and appointed Additional Chief Secretary, Printing and Stationery Department. His Finance Department charge was also withdrawn.

Mohammed Shayin

Relieved of additional charges in the Public Health and Finance Departments and now retains only the Housing for All portfolio.

D K Behera

Transferred from Secretary to the Governor to Secretary, Revenue and Disaster Management Department.

Government Faces a Crucial Test of Transparency

The Haryana government now faces an important decision. Since it was the state administration itself that referred the matter to the CBI, any delay in granting approval could trigger opposition criticism and raise questions over the government’s commitment to accountability.

On the other hand, granting permission would enable the CBI to directly question senior IAS officers and could significantly widen the scope of the investigation.

Probe Could Reshape Administrative Accountability in Haryana

The ₹590 crore fraud is no longer viewed as merely a case of financial irregularities. It has evolved into a major test of governance, administrative responsibility and institutional transparency.

If approval under Section 17-A is granted, this could become one of the rare cases in which multiple senior IAS officers are formally questioned in connection with a large-scale financial scandal involving public funds.

With the file now awaiting the Chief Minister’s approval, the entire state bureaucracy is closely watching what could become a defining moment in Haryana’s administrative history.


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