Investigation – Government Fund Diversion Case Leads to Arrest of Senior Haryana IAS Officer
Investigation – The Central Bureau of Investigation (CBI) on Monday arrested senior IAS officer Pankaj Aggarwal in connection with an alleged government fund diversion case involving two Haryana government bodies. Aggarwal, who previously served as Principal Secretary in the School Education and Agriculture departments, is accused of being linked to financial irregularities involving accounts maintained at an IDFC First Bank branch in Chandigarh. Officials said he is scheduled to be presented before a court on Tuesday.
Inquiry Originated on Haryana Government’s Request
The case came under the CBI’s jurisdiction after the Haryana government sought a central investigation into the matter. According to investigators, bank accounts linked to the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agriculture Marketing Board (HSAMB) were allegedly opened in a manner that did not comply with established financial guidelines issued by the state’s Finance Department.
The probe further found that substantial amounts of public money were transferred into these accounts beyond approved limits. Investigators stated that the accounts were opened during Aggarwal’s tenure as the administrative head of the concerned departments.
Alleged Loss of More Than Rs 60 Crore
According to findings gathered during the investigation, a series of suspicious transactions allegedly resulted in the diversion of government funds, causing an estimated loss of Rs 60.54 crore to the state exchequer. The agency said it has collected documentary and other evidence that it believes links the former bureaucrat to the case.
Officials noted that the alleged misappropriation involving the two departments represents only a portion of a much larger financial fraud that is under examination.
Links to Wider Banking Scam Under Scrutiny
Investigators have alleged that the fraud involving HSSPP and HSAMB formed part of a broader scheme connected to the Sector 32 branch of IDFC First Bank in Chandigarh. The larger case concerns the alleged siphoning of approximately Rs 504 crore belonging to eight Haryana government departments.
According to the CBI, the diverted funds were allegedly routed through shell entities using a network of fraudulent transactions. Authorities continue to examine financial records and banking trails to determine the complete movement of the money.
Multiple Accused Already Charge-Sheeted
The agency has so far filed chargesheets against 17 individuals and entities in connection with the Haryana investigation. Those named include officials from IDFC First Bank and AU Small Finance Bank, government employees, private individuals, and corporate entities allegedly linked to the transactions.
The CBI stated that its investigation remains ongoing and that additional evidence is being examined to establish accountability at various levels.
Related Arrests in Connected Cases
In another development linked to the broader investigation, senior IAS officer RK Singh, who was arrested in connection with alleged financial irregularities involving the Municipal Corporation of Panchkula, has been sent to judicial custody following the completion of his police remand period.
The agency has also taken over two separate cases from the Chandigarh administration. One concerns the Chandigarh Smart City project and the Chandigarh Municipal Corporation, while the other relates to the Centre for Research and Industrial Staff Performance (CREST).
Charges Filed in Chandigarh Cases
The CBI has already submitted chargesheets in both Chandigarh-related matters. In the Chandigarh Smart City case, the agency named five banking officials, one project-linked official, and a private individual. In the CREST investigation, charges have been filed against five bankers, two officials, four private persons, and two companies.
Additionally, a senior Indian Forest Service officer has previously been arrested in connection with the CREST case.
The agency reiterated that efforts are continuing to trace the flow of public funds and identify all individuals allegedly involved in the financial misconduct