Chandigarh: The 2011-batch IAS officer Pardeep Kumar, who is facing possible arrest in the alleged Rs 657-crore IDFC First Bank and AU Small Finance Bank scam, has blamed the then Chairman of the Haryana State Pollution Control Board (HSPCB), Vineet Garg, for directing investments in excess of the limits prescribed by the Haryana Finance Department and ignoring banks offering higher interest rates.
The allegations have been made in Kumar’s anticipatory bail application, which came up for hearing on Friday. The court has issued notice to the Central Bureau of Investigation (CBI) and fixed July 2 as the next date of hearing.
Both Pardeep Kumar and former HSPCB Chairman Vineet Garg are under the CBI scanner in connection with the alleged Rs 169-crore fraud involving HSPCB funds, which forms part of the larger Rs 657-crore banking scaminvolving IDFC First Bank and AU Small Finance Bank. According to reports, Vineet Garg did not respond to phone calls or text messages seeking his response.
Bail Plea: IAS Officer Says Investments Followed Finance Department Policy
In his anticipatory bail application, Pardeep Kumar stated that he served as Member Secretary of the Haryana State Pollution Control Board from August 31, 2022, to December 10, 2025.
He submitted before the court that investments made from matured fixed deposits were carried out strictly in accordance with directions issued by the Additional Chief Secretary, Finance Department, on July 12, 2024.
Read Also: Haryana Suspends IAS Officer Pankaj Agarwal After CBI Arrest in ₹657-Crore IDFC First Bank Scam
According to those directions, except for small finance banks empanelled for the first time with the Haryana Government, no department was permitted to invest more than Rs 50 crore with a single bank. IDFC First Bank was covered under this category.
Shift from E-File to Physical File System
Pardeep Kumar further informed the court that all investment proposals were initially processed through the HSPCB’s electronic file (e-file) system.
However, after Vineet Garg assumed charge as Chairman on December 2, 2024, he allegedly directed that files relating to fixed deposit investments be shifted from the digital e-file system to a physical file system.
According to Kumar, this change was implemented on March 25, 2025.
He also alleged that the then Chairman directed the opening of an HSPCB bank account at IDFC First Bank’s Sector-32 branch in Chandigarh.
Proposal Initially Followed Government Guidelines
Kumar stated that when Rs 143.87 crore of HSPCB surplus funds became available for investment, he compared interest rates offered by different banks before preparing an investment proposal.
According to the proposal dated March 5, 2025, he recommended:
- Rs 50 crore in IDFC First Bank at 8.25% interest for one year.
- Rs 71.93 crore in HARCO Bank at 8.17% for one year.
- Rs 21.94 crore in Sarva Haryana Gramin Bank at 8% for one year.
He claimed that this proposal complied with the Finance Department’s ceiling of Rs 50 crore for first-time empanelled banks and was subsequently approved by the Chairman.
Allegation of Investments Beyond Prescribed Limit
Pardeep Kumar has alleged that after the initial investment, further deposits were made in IDFC First Bank on the oral directions of the then Chairman.
According to the bail application, additional investments were made on:
- March 27, 2025
- July 1, 2025
- July 30, 2025
- October 1, 2025
- October 23, 2025
He claimed these investments were made despite the Rs 50-crore ceiling already being exhausted, thereby violating the Finance Department’s policy dated July 12, 2024.
The bail plea states that these subsequent investments, including instances where allocations to IDFC First Bank were allegedly enhanced by the Chairman despite other banks offering higher returns, deserve objective examination.
Alleged Preference for IDFC First Bank Despite Better Interest Rates
The IAS officer further alleged that substantial public funds continued to be invested in the Sector-32 branch of IDFC First Bank, Chandigarh, even though several nationalised, government-owned and private banks located in Panchkula, where HSPCB is headquartered, were offering competitive or higher interest rates.
He specifically referred to an investment proposal dated October 23, 2025, where the proposed investment in IDFC First Bank was allegedly increased from Rs 25 crore to Rs 50 crore by the then Chairman himself, despite another empanelled bank offering a better return.
Kumar also claimed that an additional transaction of Rs 3.50 crore was made in favour of the same bank branch on the Chairman’s verbal directions.
“I Only Followed Instructions”: IAS Officer
Pardeep Kumar has argued before the court that as Member Secretary, he merely implemented decisions taken by his superior officer and had no independent role in altering investment allocations.
He further claimed that even after his transfer from the department, his successor, IAS officer Yogesh Kumar, submitted another investment proposal that was also revised by the then Chairman using powers vested in him.
According to Kumar, these developments demonstrate that the decisions regarding enhanced investments rested with the Chairman rather than the Member Secretary.
CBI Probe into Rs 657-Crore Scam
The alleged HSPCB fraud involving Rs 169 crore is one of several cases being investigated by the Central Bureau of Investigation as part of the wider Rs 657-crore IDFC First Bank and AU Small Finance Bank scam, involving alleged misappropriation of public funds across multiple government departments in Haryana and Chandigarh.
The CBI has been investigating the role of government officials, bank officials and others in the alleged diversion and fraudulent investment of government funds.
The anticipatory bail plea filed by IAS officer Pardeep Kumar will now be heard on July 2, after the CBI files its response before the court.
Read Also: IDFC-AU Bank Scam Heat Rises: Haryana IAS Officer D.K. Behera Goes on Long Leave Amid CBI Probe
