New Delhi: The Central Bureau of Investigation (CBI) has arrested senior IAS officer Pankaj Aggarwal in connection with an alleged large-scale misappropriation of government funds involving Haryana government departments and private entities. The arrest marks the second detention of a senior IAS officer by the agency within a week as part of its ongoing probe into a multi-crore banking fraud.

According to the CBI, Aggarwal was arrested on Monday and is expected to be produced before a court. At the time relevant to the investigation, he was serving as Principal Secretary in the Department of School Education and the Department of Agriculture in Haryana.

The case relates to the alleged diversion of government funds from accounts maintained by the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agriculture Marketing Board (HSAMB) at the Sector 32 branch of IDFC First Bank in Chandigarh.

Probe transferred to CBI

The investigation was handed over to the CBI by the Haryana Government after concerns emerged regarding alleged financial irregularities involving multiple government departments.

The agency took over the case from the State Vigilance and Anti-Corruption Bureau, Haryana, and subsequently launched a detailed investigation into the transactions.

According to investigators, the accounts in question were allegedly opened in violation of finance department guidelines issued by the Haryana Government.

The CBI alleged that substantial funds were transferred into these accounts beyond prescribed limits, creating opportunities for fraudulent transactions.

Alleged loss of Rs 60.54 crore

Investigators claim that irregular transactions carried out through the accounts resulted in a net loss of Rs 60.54 crore to the state government.

The agency stated that evidence collected during the investigation linked Aggarwal to decisions taken during the period when the accounts were opened and operated.

“The investigation revealed that fraudulent transactions in these accounts led to the misappropriation of funds, causing a net loss of Rs 60.54 crore to the government,” the CBI said.

Officials added that incriminating material was recovered during the course of the investigation, leading to the arrest of the senior bureaucrat.

Part of larger Rs 504 crore scam

The alleged fraud involving HSSPP and HSAMB is reportedly part of a much larger financial scandal connected to the Sector 32 branch of IDFC First Bank.

According to the CBI, funds amounting to approximately Rs 504 crore from eight Haryana government departments were allegedly siphoned off and routed through shell companies and other entities.

The agency believes the scheme involved coordinated actions between bank officials, government employees and private individuals.

Investigators are examining the flow of funds and the role played by various entities in facilitating the transactions.

Multiple accused already chargesheeted

So far, the CBI has filed chargesheets against 17 accused in the Haryana case.

Those named include six officials from IDFC First Bank and AU Small Finance Bank, three Haryana government officials, two companies and six private individuals.

The agency has alleged that a network of individuals worked together to facilitate the diversion of public funds.

Further arrests are not being ruled out as the investigation progresses.

Second IAS arrest in a week

The arrest of Pankaj Aggarwal comes days after another senior IAS officer, R.K. Singh, was arrested in connection with a separate case involving the alleged misappropriation of funds linked to the Municipal Corporation, Panchkula.

Following the completion of his police remand, Singh was remanded to judicial custody.

The back-to-back arrests of senior bureaucrats have brought renewed attention to the ongoing investigations into financial irregularities involving government institutions.

Chandigarh-linked cases also under investigation

Apart from the Haryana fraud case, the CBI has taken over investigations into two separate cases from the Union Territory of Chandigarh.

These cases relate to Chandigarh Smart City Limited (CSCL), the Chandigarh Municipal Corporation and CREST Chandigarh.

The agency has already filed chargesheets in both matters.

In the CSCL case, five bankers, one CSCL official and one private individual have been chargesheeted. In the CREST case, the CBI has named five bankers, two CREST officials, four private individuals and two companies.

A senior Indian Forest Service (IFoS) officer has also been arrested in connection with the CREST investigation.

Searches reveal alleged financial trail

On June 6, the CBI carried out searches at six locations across Chandigarh, Panchkula and Delhi-NCR as part of the broader investigation.

The raids targeted residences of senior Haryana-cadre officials and premises linked to M/s Vipam Consultancy Pvt. Ltd. and its director.

According to the agency, evidence suggests that certain public servants allegedly colluded with bank officials to facilitate the opening of accounts, transfer of funds and subsequent diversion of money.

The consultancy firm is alleged to have received proceeds of crime, which were later transferred to the personal account of its director.

During the searches, investigators seized documents, digital devices, property records and other materials relevant to the probe.

Conclusion

The arrest of senior IAS officer Pankaj Aggarwal marks a significant development in the CBI’s investigation into the alleged misappropriation of government funds in Haryana. With the probe expanding across multiple departments, banks and private entities, authorities continue to examine what is believed to be a large network involved in the diversion of public money. The investigation remains ongoing, with further action expected based on the evidence collected.