Chandigarh: In a major development in the multi-crore Haryana government banking fraud, the Central Bureau of Investigation (CBI) has arrested IAS officer Pradeep Kumar, the then Member Secretary of the Haryana State Pollution Control Board (HSPCB), for his alleged role in the misappropriation of government funds amounting to nearly ₹169 crore.
According to the CBI, the fraud forms part of a much larger ₹504 crore banking scam involving eight Haryana government departments and is the single biggest financial loss suffered by any department linked to the overall case.
CBI Arrests Former HSPCB Member Secretary
The CBI arrested Pradeep Kumar, an IAS officer who served as the Member Secretary of the Haryana State Pollution Control Board (HSPCB), after tracing his whereabouts following repeated attempts to secure his cooperation during the investigation.
According to the investigating agency, Kumar had allegedly been evading the probe and failed to join the investigation despite several notices and efforts made by the agency.
The arrest marks another significant breakthrough in the ongoing investigation into one of Haryana’s biggest alleged financial frauds involving government funds.
₹169 Crore Allegedly Diverted Instead of Being Invested
According to the CBI, the investigation has established an alleged direct nexus between Pradeep Kumar and the fraudulent investment of HSPCB funds.
The agency claimed that:
- Pradeep Kumar personally handled investment-related decisions at his level.
- Government funds intended for creating fixed deposits (FDs) were transferred to IDFC First Bank, Sector-32, Chandigarh, far beyond the prescribed financial limits.
- Instead of directly creating fixed deposits, the money was first transferred into a separate bank account opened in the name of HSPCB.
Investigators found that the Pollution Control Board was unable to produce any official record or approval regarding the opening of this account.
No Fixed Deposits Were Ever Created, Says CBI
The investigation further revealed that despite transferring huge amounts of public money, no fixed deposits were actually created.
Instead, according to the CBI:
- Fraudulent debit transactions were carried out from the account.
- Government funds were allegedly siphoned off.
- The Haryana government suffered a net financial loss of approximately ₹169 crore.
The agency described it as the single largest financial loss suffered by any Haryana government department in the overall banking fraud under investigation.
How the Alleged Conspiracy Worked
According to the CBI, the alleged conspiracy involved several irregularities:
- Opening of a bank account without mandatory approvals.
- Transfer of public funds under the pretext of creating fixed deposits.
- Absence of departmental documentation regarding the account.
- Diversion of funds through fraudulent debit transactions instead of investments.
The agency alleged that the account itself was opened solely to facilitate the diversion of government money.
Part of a Much Bigger ₹504 Crore Banking Scam
The HSPCB fraud is not an isolated case.
According to the CBI, it forms part of a larger banking fraud involving nearly ₹504 crore belonging to eight departments of the Haryana Government.
The funds were allegedly siphoned off through:
- Forged fixed deposits,
- Non-existent FDs,
- Fraudulent banking transactions, and
Subsequent routing of money through shell companies and entities.
CBI Took Over Probe from Haryana Vigilance
The investigation was originally being handled by the State Vigilance and Anti-Corruption Bureau (SVACB), Haryana.
However, considering the magnitude of the alleged fraud, the Haryana Government requested the Central Bureau of Investigation to take over the case.
The CBI has since expanded the probe into multiple linked financial frauds involving government departments.
17 Accused Chargesheeted So Far
The CBI has already filed chargesheets against 17 accused in connection with the Haryana banking fraud.
These include:
- Six bank officials from IDFC First Bank and AU Small Finance Bank
- Three public servants from the Haryana Government
- Two companies
- Six private individuals
Prior to the arrest of Pradeep Kumar, the agency had already arrested two senior officers in connection with the case.
Linked Chandigarh Cases Also Under Investigation
The CBI has also taken over two related financial fraud cases from the Union Territory of Chandigarh involving government bodies.
1. Chandigarh Smart City Limited (CSCL)
The agency has filed a chargesheet against:
- Five bank officials
- One CSCL official
- One private individual
2. Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST)
In this case, chargesheets have been filed against:
- Five bankers
- Two CREST officials
- Four private individuals
- Two companies
Additionally, a senior Indian Forest Service (IFoS) officer has already been arrested in connection with the CREST case.
CBI Intensifies Multi-State Financial Fraud Investigation
The latest arrest underscores the CBI’s widening investigation into what has emerged as a complex network of alleged banking fraud, forged investment instruments, misuse of government accounts and diversion of public funds across Haryana and Chandigarh.
Investigators are continuing to examine the role of government officials, bank employees, private firms and shell entities involved in the alleged scam.
With multiple charge sheets already filed and several arrests made, further action is expected as the investigation progresses.
