Haryana Suspends IAS Officer Pankaj Agarwal Following CBI Arrest in Alleged Rs 657-Crore IDFC First Bank Scam
The Haryana Government has placed senior IAS officer Pankaj Agarwal under suspension following his arrest by the Central Bureau of Investigation (CBI) in connection with the alleged Rs 657-crore IDFC First Bank and AU Small Finance Bank scam. The case, which involves the alleged diversion of government funds from multiple departments in Haryana and the Chandigarh Administration, has emerged as one of the biggest financial fraud investigations involving public institutions in the region.
The suspension comes just days after the CBI arrested the 2000-batch Haryana cadre IAS officer and produced him before a competent court on June 23. Agarwal is currently in judicial custody while the investigating agency continues to probe the alleged misappropriation of public money and the role of government officials, bank executives and private individuals.
The administrative action by the Haryana Government marks another significant development in a case that has already led to the arrest of senior bureaucrats and the filing of multiple chargesheets.
CBI Arrested Senior IAS Officer Earlier This Week
Pankaj Agarwal, a 2000-batch IAS officer of the Haryana cadre, was taken into custody by the Central Bureau of Investigation after the agency claimed to have gathered evidence indicating his alleged involvement in the fraudulent diversion of government funds.
According to the CBI, the alleged irregularities occurred during his tenure in senior positions within the Haryana Government, where he handled departments responsible for substantial public funds.
Following his arrest, Agarwal was produced before the court on June 23. After completion of the initial proceedings, the court remanded him to judicial custody as the investigation progressed.
The CBI maintains that its investigation uncovered sufficient material warranting his arrest in connection with the ongoing financial fraud case.
Haryana Government Orders Suspension
Soon after his arrest and judicial remand, the Haryana Government issued orders suspending Pankaj Agarwal from service.
The suspension is an administrative measure generally adopted when a serving government officer faces serious criminal proceedings, particularly in cases being investigated by agencies such as the CBI.
The move also ensures that the investigation proceeds without any possibility of official interference while legal proceedings continue.
Alleged Diversion of More Than Rs 60 Crore
According to the CBI, one of the major components of the investigation relates to the alleged fraudulent diversion of more than Rs 60.54 crore from two Haryana Government bodies.
The agency alleges that funds belonging to the Haryana School Shiksha Pariyojana Parishad (HSSPP) and the Haryana State Agriculture Marketing Board (HSAMB) were illegally siphoned off through bank accounts opened in violation of prescribed government norms.
Investigators claim that these accounts were opened at the Sector-32 branch of IDFC First Bank in Chandigarh during Pankaj Agarwal’s tenure as Principal Secretary.
The CBI alleges that government funds exceeding the permissible financial limits were transferred into these accounts before being diverted through a series of fraudulent transactions, resulting in substantial losses to the state exchequer.
CBI Details Alleged Financial Loss
In its official statement, the CBI said the investigation revealed that fraudulent transactions carried out through the accounts of the two government departments caused a net financial loss of Rs 60.54 crore to the Haryana Government.
According to the agency, the accounts were opened during Agarwal’s tenure as Principal Secretary, and subsequent transactions led to the alleged misappropriation of public funds.
These allegations form an important part of the broader investigation currently being undertaken by the central agency.
The allegations, however, remain under investigation and have not yet been adjudicated by a court of law.
Part of a Much Larger Rs 657-Crore Probe
The alleged irregularities involving HSSPP and HSAMB constitute only one part of the wider financial fraud currently under investigation.
According to the CBI, the overall scam involves the alleged siphoning of approximately Rs 657 crore from several government organisations in Haryana and Chandigarh.
Investigators allege that nearly Rs 504 crore was diverted from eight departments of the Haryana Government, while another Rs 153 crore was allegedly embezzled from institutions under the Chandigarh Administration.
The CBI assumed responsibility for the investigation after the Haryana Government referred the matter to the agency.
Since then, investigators have been examining financial records, banking transactions and official approvals across multiple departments.
Chargesheets Filed Against Multiple Accused
The CBI has already filed a chargesheet against 17 accused in the Haryana-related portion of the investigation.
Those named include six officials associated with IDFC First Bank and AU Small Finance Bank, three government officials, two companies and six private individuals.
According to the agency, the evidence collected during the investigation eventually led to the arrest of Pankaj Agarwal.
The investigation remains ongoing, and officials have indicated that additional action may follow if further evidence emerges.
Senior Administrative Positions Held by Pankaj Agarwal
Before his arrest, Pankaj Agarwal occupied several important positions in the Haryana Government.
He served as Principal Secretary of the School Education Department between December 2024 and June 2025. He also held the position of Principal Secretary in the Agriculture Department during his administrative career.
The CBI alleges that the transactions under investigation took place during the period when he held these key assignments.
Agarwal has not been convicted in the case, and the allegations against him remain subject to judicial scrutiny.
Investigation Extends Beyond Haryana Departments
The CBI has clarified that the investigation is not confined to departments of the Haryana Government.
The agency is simultaneously probing two related cases involving institutions under the Chandigarh Administration.
One investigation concerns Chandigarh Smart City Limited (CSCL) and alleged financial irregularities involving the Municipal Corporation Chandigarh.
In that case, the CBI has already filed chargesheets against five bank officials, one CSCL official and one private individual.
Another investigation relates to the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST).
In the CREST case, the agency has chargesheeted five bank officials, two CREST officials, four private individuals and two companies.
The CBI has also confirmed that one senior Indian Forest Service (IFoS) officer has already been arrested in connection with the CREST investigation.
R.K. Singh Also Remains in Judicial Custody
The agency has also informed the court that senior IAS officer R.K. Singh, who was arrested in connection with the alleged misappropriation of funds linked to the Municipal Corporation of Panchkula, continues to remain in judicial custody after the expiry of his police remand.
His case forms another component of the wider investigation into alleged financial irregularities involving government institutions.
Probe Continues as More Evidence is Examined
The Central Bureau of Investigation has indicated that the investigation is still underway and that officials continue to scrutinise financial records, bank transactions, internal approvals and the role of government officials, banking personnel and private entities connected with the alleged scam.
The suspension of IAS officer Pankaj Agarwal represents a significant administrative step by the Haryana Government as the probe gathers momentum. With multiple departments, financial institutions and senior officials under the scanner, the investigation is expected to continue in the coming weeks as the agency seeks to establish the complete chain of responsibility behind the alleged Rs 657-crore financial fraud.
It is important to note that the allegations made by the CBI are part of an ongoing investigation. The matter is currently before the courts, and the accused are entitled to the presumption of innocence until proven guilty through the due process of law.
