Chandigarh: A CBI Special Court in Haryana on Thursday rejected the bail application of suspended IAS officer Pankaj Agarwal (IAS:2000:Haryana), who is accused of facilitating the alleged ₹657 crore Haryana bank scam by approving the opening of bank accounts that were allegedly used to divert government funds.
Agarwal has remained in police and judicial custody since June 22, while the Central Bureau of Investigation (CBI) continues its probe into one of the state’s biggest alleged financial frauds.
IAS Officer Claimed Innocence
Seeking bail, Agarwal told the court that he had never demanded or accepted any bribe and that his role was limited to granting administrative approvals based on proposals submitted by subordinate officers.
He argued there was no direct evidence linking him to the alleged fraud and maintained that he merely discharged his official responsibilities.
Read also: CBI Opposes IAS Officer Pankaj Agarwal’s Bail, Alleges Role in Rs 657 Crore Haryana Bank Scam
CBI Opposed Bail
The CBI strongly opposed the bail application, alleging that Agarwal acted in close coordination with Ribhav Rishi, the alleged mastermind of the scam and former Branch Manager of IDFC First Bank, Sector-32, Chandigarh.
According to the investigating agency, Agarwal received monetary and other “unethical” benefits from Rishi and played a key role in facilitating the opening of bank accounts that enabled the diversion of government funds.
The agency further argued that Agarwal’s involvement surfaced in two separate government departments under his charge, where approvals were allegedly granted in violation of Finance Department guidelines.
Alleged Irregularities in School Education Department
The CBI informed the court that Agarwal served as Principal Secretary, School Education, from December 10, 2024, to June 16, 2025.
According to the agency:
- Within a week of assuming office, IDFC First Bank submitted a proposal to open an account for the Haryana School Shiksha Pariyojna Parishad (HSSPP).
- Agarwal marked the proposal to subordinate officers and approved it on December 31, 2024.
- He also approved the transfer of ₹100 crore from an existing Kotak Mahindra Bank account.
The CBI alleged that the account was opened without any genuine administrative requirement and in violation of Finance Department norms.
The agency claimed:
- No competitive process or quotations from empanelled banks were obtained.
- The proposal relied solely on the higher interest rate offered by IDFC First Bank without comparing alternatives.
- The transfer exceeded the prescribed investment ceiling, as ₹100 crore was transferred despite the bank’s permissible limit being ₹50 crore.
The CBI further alleged that Agarwal pressured subordinate officials to modify file notings and process the proposal favourably.
According to investigators, the HSSPP account later witnessed:
- 101 fraudulent debit transactions worth ₹182.93 crore
- 33 fraudulent credit transactions worth ₹132.39 crore
The agency estimated the net misappropriation at ₹50.54 crore from this account alone.
Allegations in Agriculture Department
The CBI also alleged that after assuming charge as Principal Secretary, Agriculture & Farmers Welfare on June 20, 2025, Agarwal again intervened to facilitate another account at the same IDFC First Bank branch.
As Chairman of the Haryana State Agriculture Marketing Board (HSAMB), he allegedly revived a pending proposal that had earlier not been processed.
According to the agency:
- The proposal was revived on July 1, 2025.
- The account was opened on July 10, 2025 in the name of the Haryana Marketing Development Fund.
Investigators claimed there was no administrative necessity for opening the account since HSAMB already maintained multiple bank accounts.
The agency further alleged that ₹10 crore was fraudulently withdrawn from the account on January 14, 2026, using a cancelled cheque in favour of two private firms:
- M/s SRR Planning Gurus Pvt. Ltd.
- M/s Mannat Contractors
Alleged Links with Co-Accused
The CBI told the court that investigation had uncovered evidence of communication between Agarwal and co-accused Ribhav Rishi relating to the disputed banking transactions.
It further alleged that Agarwal maintained close personal contact with Rishi even after the latter had been removed from his position at IDFC First Bank.
According to the agency, Agarwal was fully aware of the alleged conspiracy to divert government funds and repeatedly received pecuniary and other advantages in return for facilitating the transactions and failing to prevent the diversion of public money.
Bail Rejected; Detailed Order Awaited
After hearing submissions from both sides, the CBI Special Court dismissed Agarwal’s bail application.
However, the court had not released its detailed order at the time of filing this report.
The investigation into the alleged ₹657 crore Haryana bank scam is continuing, with the CBI probing the roles of several accused in the alleged diversion of government funds through irregular banking transactions.
Read also: Suspended Haryana IAS Pankaj Agarwal Seeks Bail in ₹657 Crore IDFC First Bank Scam
