Chandigarh: The Haryana government has placed two Indian Administrative Service officers under immediate suspension as investigations deepen into an alleged ₹748-crore financial fraud involving government funds and private sector banks, including IDFC First Bank, AU Small Finance Bank and Kotak Mahindra Bank.
The suspended officers are Pradeep Kumar, a 2011-batch IAS officer, and Ram Kumar Singh, a 2012-batch IAS officer. Both officers were suspended through separate orders issued by Haryana Chief Secretary Anurag Rastogi on Wednesday night.
Although the suspension orders do not formally mention the reason, official sources indicate that the action is directly linked to the ongoing probe into alleged misappropriation, forgery and embezzlement of government funds routed through fixed deposits and unauthorised banking transactions.
Officers Held Sensitive Posts During Period Under Scrutiny
Officials said Pradeep Kumar served as Member Secretary of the Haryana State Pollution Control Board during the period from August 31, 2022 to December 10, 2025, a tenure now under scrutiny because several disputed fixed deposits and banking transactions are linked to the board.
Before suspension, he was posted as Director, State Transport.
Ram Kumar Singh served as Commissioner of Panchkula Municipal Corporation between July 10, 2025 and January 28, 2026, the period during which alleged irregularities involving municipal funds reportedly took place.
Before suspension, he was serving as Special Secretary, Revenue and Additional CEO of Panchkula Metropolitan Development Authority.
Suspension Ordered Under All India Services Rules
The suspension has been ordered under Rule 3(1)(a) of the All India Services (Discipline & Appeal) Rules, 1969, which allows suspension when disciplinary proceedings are contemplated or pending.
According to the order, both officers will receive subsistence allowance under Rule 4 of the same rules during suspension.
Their headquarters during the suspension period have been fixed at the office of the Haryana Chief Secretary, Services-I Branch, Chandigarh.
₹590 Crore to ₹597 Crore Fraud Linked to Fixed Deposits and Shell Firms
The biggest component of the alleged fraud relates to ₹590 crore to ₹597 crore, involving government funds that were reportedly meant for fixed deposits in private banks.
Investigators suspect that money parked by various departments, including the Haryana State Pollution Control Board, was illegally diverted through banking channels and routed into shell companies.
Among the companies under scanner is Swastik Desh Projects, which allegedly received diverted funds later used for luxury assets and real estate purchases.
The transactions are being examined for possible collusion between bank officials, middlemen and insiders in government institutions.
Kotak Mahindra Bank Linked to Separate ₹150–₹158 Crore Fraud
A second major case under investigation concerns ₹150 crore to ₹158 crore involving alleged unauthorised banking operations linked to Panchkula Municipal Corporation accounts at Kotak Mahindra Bank.
Officials suspect forged seals and signatures were used to open unauthorised accounts and prematurely liquidate fixed deposits.
The alleged irregularities surfaced when municipal authorities attempted account verification and closure procedures.
Fraud Detected Through Missing Funds and Forged Statements
The scam began surfacing in phases between July 2025 and February 2026.
Departments including urban local bodies and development and panchayats reportedly found discrepancies when they attempted to verify balances or close deposits.
Officials discovered:
- forged bank statements
- missing fixed deposits
- mismatched account records
- unauthorised transactions
These findings triggered deeper scrutiny across multiple departments.
Investigation Accelerated After Arrests in March 2026
The investigation gained major momentum in March 2026 after key suspects were arrested.
Subsequently, the Haryana government moved to de-empanel the private banks under scrutiny from future government financial dealings.
The probe is now examining administrative accountability, banking procedures, internal controls and possible institutional failures.
Administrative Impact Likely to Expand
Sources indicate more officials and banking functionaries may come under scrutiny as financial trails are examined across departments.
The suspension of two IAS officers signals that the government is prepared to extend accountability beyond banking channels to administrative officers who held charge during critical periods.
