Chandigarh: Haryana Chief Minister Nayab Singh Saini on Friday defended the suspension of two IAS officers in connection with major bank scam cases, invoking Narendra Modi and reiterating the government’s “zero tolerance for corruption” stance. The action comes in the wake of alleged financial irregularities involving over ₹740 crore across multiple banks.
CM Invokes PM Modi, Reaffirms Anti-Corruption Stand
Addressing the media, Saini emphasized that the state government is committed to accountability and transparency.
“The state government has zero tolerance for corruption. We are answerable to the state’s people as the matter pertains to their hard-earned money,” he said.
Invoking the Prime Minister’s governance approach, he added, “This government runs on the tradition set up by PM Modi. This state has to be taken forward.”
Scams Involving Multiple Banks
The controversy revolves around two major scam cases:
- ₹590 crore scam involving IDFC First Bank and AU Small Finance Bank
- ₹150 crore scam involving Kotak Mahindra Bank
Saini claimed that swift government action ensured recovery of funds. “A major fraud had taken place at IDFC First Bank and AU Small Finance Bank, but we got our money in 24 hours. In the Kotak Mahindra Bank case, they have also returned the money,” he said.
However, reports indicate that Kotak Mahindra Bank has so far returned only ₹127 crore, which is the principal amount.
Probe Committees and Investigations
Following the scams, the Haryana government constituted a high-level committee led by the Principal Secretary to the Chief Minister and Additional Chief Secretary (Finance) Arun Kumar Gupta. The committee has already submitted its report to the government, recommending corrective measures.
The State Vigilance and Anti-Corruption Bureau Haryana conducted investigations into the cases and made multiple arrests:
- 15 individuals arrested in the IDFC First Bank and AU Small Finance Bank case
- 6 individuals arrested in the Kotak Mahindra Bank case
Subsequently, the Central Bureau of Investigation has taken over the probe into the IDFC First and AU Small Finance Bank scam.
IAS Officers Suspended, Others Reassigned
While the government recently carried out an administrative reshuffle, only two IAS officers—Pardeep Kumar and Ram Kumar Singh—have been suspended so far.
Other officers who had previously headed departments linked to the alleged scams have had their key portfolios withdrawn but were not suspended.
Modus Operandi of the Scams
The IDFC First Bank and AU Small Finance Bank scam reportedly involved fraudulent banking operations and fictitious transactions used to siphon off government funds into accounts linked to shell entities.
In the Kotak Mahindra Bank case, as per the FIR:
- The Panchkula Municipal Corporation maintained 16 fixed deposits worth ₹145.03 crore
- The maturity value stood at ₹158.02 crore
- 11 FDs worth ₹59.58 crore matured on February 16
- Discrepancies emerged when bank statements failed to match municipal records
These inconsistencies raised serious concerns about financial oversight and internal controls.
Conclusion
The Haryana government’s firm response, including IAS suspensions and multiple investigations, underscores the seriousness of the alleged scams. With central agencies now involved and recovery efforts underway, the case is likely to remain under close scrutiny in the coming weeks.
