Chandigarh: The Haryana government has suspended senior Indian Administrative Service (IAS) officer Pankaj Agarwal (IAS:2000:Haryana) following his arrest by the Central Bureau of Investigation (CBI) in connection with the alleged ₹657-crore IDFC First Bank scam, which involves the suspected siphoning of government funds from multiple departments in Haryana and the Chandigarh Administration.
The suspension comes days after Agarwal was arrested by the CBI and produced before a court on June 23. He is currently in judicial custody as the agency continues its investigation into what is being described as one of the biggest financial frauds involving government departments in the region.
IAS Officer Arrested by CBI
Pankaj Agarwal, a 2000-batch Haryana cadre IAS officer, was arrested earlier this week after the CBI claimed to have gathered incriminating evidence regarding his alleged role in the fraudulent diversion of government funds.
According to the agency, Agarwal allegedly played a significant role in the misappropriation of public money during his tenure as Principal Secretary in key departments of the Haryana government.
Following his arrest, he was produced before the competent court on June 23 and later remanded to judicial custody.
Alleged Misappropriation of Over ₹60 Crore
The CBI has alleged that more than ₹60.54 crore was fraudulently siphoned from the bank accounts of:
- Haryana School Shiksha Pariyojana Parishad (HSSPP)
- Haryana State Agriculture Marketing Board (HSAMB)
The agency stated that the fraudulent transactions occurred through bank accounts allegedly opened in violation of Haryana Government norms.
According to the CBI, these accounts were opened at the Sector-32 branch of IDFC First Bank in Chandigarhduring Agarwal’s tenure as Principal Secretary.
Funds exceeding the prescribed financial limits were allegedly transferred into these accounts before being siphoned off through fraudulent transactions.
In an official statement, the CBI spokesperson said, “These accounts were opened during the tenure of Pankaj Agarwal, the then Principal Secretary. Investigation revealed that through fraudulent transactions in the accounts of these departments, funds were misappropriated, causing a net loss of ₹60.54 crore to the government.”
Part of a Massive ₹657-Crore Scam
The alleged fraud involving HSSPP and HSAMB forms only a part of a much larger investigation being carried out by the CBI.
According to the agency, the overall scam involves:
- ₹504 crore allegedly siphoned from eight Haryana Government departments, and
- ₹153 crore allegedly embezzled from the Chandigarh Administration.
Together, the total alleged financial fraud under investigation stands at approximately ₹657 crore.
The CBI took over the probe after receiving a reference from the Haryana Government.
Chargesheet Filed Against 17 Accused
The investigating agency has already filed a chargesheet against 17 accused in the Haryana-related case.
These include:
- Six officials of IDFC First Bank and AU Small Finance Bank
- Three Haryana Government officials
- Two companies
- Six private individuals
The agency said the investigation uncovered substantial evidence against Pankaj Agarwal, leading to his arrest.
Key Government Positions Held by Pankaj Agarwal
Before his arrest, Pankaj Agarwal held several important assignments in the Haryana Government.
He served as:
- Principal Secretary, School Education Department between December 2024 and June 2025
- Principal Secretary, Agriculture Department
The alleged fraudulent transactions are stated to have occurred during his tenure in these administrative positions.
CBI Probe Expands to Other Cases
The CBI stated that its investigation is not limited to the Haryana Government departments alone.
The agency is simultaneously probing two related cases in Chandigarh involving:
Chandigarh Smart City Limited (CSCL)
The investigation covers alleged irregularities involving Chandigarh Smart City Limited (CSCL) and the Municipal Corporation Chandigarh.
According to the CBI, chargesheets have been filed against:
- Five bank officials
- One CSCL official
- One private individual
CREST Chandigarh Case
The agency is also investigating another case linked to CREST (Chandigarh Renewable Energy and Science & Technology Promotion Society).
In this case, the CBI has chargesheeted:
- Five bank officials
- Two CREST officials
- Four private individuals
- Two companies
The agency also confirmed that one senior Indian Forest Service (IFoS) officer has already been arrested in connection with the CREST case.
R K Singh Also in Judicial Custody
The CBI further informed that senior IAS officer R K Singh, who was arrested in connection with the alleged misappropriation of funds in the Municipal Corporation of Panchkula, has also been remanded to judicial custody after the expiry of his police remand.
His case forms part of the broader investigation into financial irregularities involving government institutions.
Investigation Continues
The CBI has indicated that the investigation remains ongoing and further action may follow as officials continue to examine financial records, banking transactions and the involvement of government officials, banking personnel and private entities in the alleged multi-crore scam.
The suspension of Pankaj Agarwal marks a significant administrative action by the Haryana Government as the investigation into the alleged ₹657-crore financial fraud continues.
