Chandigarh: In a major development in the ₹590-crore government funds fraud linked to IDFC FIRST Bank and AU Small Finance Bank, the Haryana government has granted sanction to the Central Bureau of Investigation (CBI) to interrogate eight IAS officers in connection with the case.
The approval was granted under Section 17A of the Prevention of Corruption Act, which requires prior sanction before investigating public servants for decisions taken in the course of official duties.
Initial Approval for Five IAS Officers, Now Extended to Three More
The CBI had initially sought permission to question five IAS officers based on disclosure statements made by accused persons and evidence collected during the investigation.
Subsequently, three additional senior IAS officers came under the scanner, prompting the agency to seek approval to interrogate a total of eight officers. The Haryana government has now granted the required sanction.
Sources said the CBI is expected to begin questioning the officers once the formal written approval is received.
Among those named are a 1991-batch IAS officer, regarded as one of Haryana’s most senior bureaucrats, as well as one officer each from the 2000 and 2002 batches. According to Indian Express report, two other officers – Pradeep Kumar (2011 batch) and R.K. Singh (2012 batch), both promoted from the Haryana Civil Services – are already under suspension.
₹590-Crore Scam Involves Alleged Misuse of Government Funds
According to officials, employees of IDFC FIRST Bank and AU Small Finance Bank allegedly colluded with public servants from various Haryana government departments to divert and misappropriate government funds amounting to ₹590 crore.
Investigators are examining the administrative approvals and financial decisions that enabled the placement of government deposits in private banks.
CBI Conducts Searches in Chandigarh and Panchkula
As part of the ongoing investigation, the CBI recently carried out searches at multiple locations in Chandigarh and Panchkula.
During the raids, the agency reportedly seized financial records, digital devices, and other documentary evidence relevant to the case.
16 Arrested So Far
The case has already led to the arrest of 16 individuals, including bank officials and others allegedly involved in the fraudulent transactions.
Authorities say fresh disclosures continue to emerge as the investigation progresses.
How the Probe Began
A Haryana government spokesperson said the Development and Panchayats Department constituted an inquiry committee in February 2026 after suspected irregularities were detected in government accounts maintained with the two banks.
The committee found prima facie evidence of financial misconduct, following which the matter was referred to the State Vigilance and Anti-Corruption Bureau (SV&ACB).
An FIR was registered on February 23, 2026, at the SV&ACB police station in Panchkula under provisions of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita (BNS).
The investigation was later transferred to the CBI for a comprehensive probe.
Investigation Expected to Uncover Administrative Accountability
With permission now granted to interrogate eight IAS officers, the probe has entered a critical phase.
Investigators are expected to examine whether administrative lapses, negligence, or active collusion enabled the alleged diversion of large amounts of public money.
The outcome of the investigation could have significant implications for accountability in the management of government funds.
Read Also: Haryana ₹590 Crore Bank Fraud Probe Reaches Top Bureaucracy; CBI To Question 5 IAS Officers
