CBI Arrests IAS Officer Pradeep Kumar in ₹169 Crore Haryana Pollution Board Scam; Probe Linked to ₹504 Crore Multi-Department Banking Fraud
Chandigarh: The Central Bureau of Investigation (CBI) has arrested senior IAS officer Pradeep Kumar in connection with the alleged misappropriation of nearly ₹169 crore belonging to the Haryana State Pollution Control Board (HSPCB), marking another major breakthrough in its investigation into the sprawling ₹504 crore Haryana government banking scam.
According to the investigating agency, Pradeep Kumar, who served as the Member Secretary of the Haryana State Pollution Control Board, played a crucial role in the alleged diversion of government funds that were meant to be invested in fixed deposits. The CBI claims that instead of being safely invested, the money was routed through an unauthorised bank account and subsequently siphoned off through fraudulent transactions.
The agency has described the HSPCB case as the single largest financial loss suffered by any government department in the broader banking fraud that has engulfed multiple departments in Haryana and triggered one of the state’s biggest financial crime investigations in recent years.
CBI Arrests Former HSPCB Member Secretary After Intensive Search
The arrest came after the CBI tracked down Pradeep Kumar following what investigators described as repeated attempts to secure his cooperation.
According to the agency, Kumar had allegedly failed to join the investigation despite multiple notices and sustained efforts by investigators to question him. Officials claimed he had been avoiding the probe, prompting the agency to intensify efforts to locate him before finally taking him into custody.
His arrest marks another significant development in the expanding investigation, which has already led to multiple arrests, departmental action against senior officials and the filing of several charge sheets.
The case has attracted considerable attention because of the sheer scale of the alleged financial irregularities and the involvement of senior bureaucrats, bank officials and private entities.
₹169 Crore Allegedly Diverted Instead of Being Invested
According to the CBI, its investigation has revealed what it describes as a direct nexus between Pradeep Kumar and the alleged fraudulent handling of HSPCB funds.
Investigators claim that Kumar personally dealt with key investment-related decisions during his tenure as Member Secretary.
The agency alleges that substantial government funds, originally earmarked for investment in fixed deposits (FDs), were transferred to an IDFC First Bank branch in Sector 32, Chandigarh, in violation of prescribed financial norms and investment procedures.
Instead of being directly converted into fixed deposits, the funds were first credited to a separate bank account opened in the name of the Haryana State Pollution Control Board.
What has raised serious concerns during the investigation is the alleged absence of any official approval or departmental record authorising the opening of this account.
According to the CBI, officials of the Pollution Control Board were unable to produce any documents explaining why the account had been opened or who had formally approved it.
No Fixed Deposits Created Despite Massive Fund Transfers
The investigation has further revealed that although hundreds of crores of rupees were transferred with the stated objective of creating fixed deposits, no such investments were actually made.
Instead, the CBI alleges that the funds were systematically diverted through fraudulent debit transactions.
Investigators claim the money was withdrawn from the account rather than invested, causing a direct financial loss of approximately ₹169 crore to the Haryana State Pollution Control Board.
According to the agency, this represents the highest financial loss suffered by any single department in the wider ₹504 crore banking fraud currently under investigation.
The alleged diversion of public money has become one of the central aspects of the CBI’s ongoing probe.
How Investigators Say the Alleged Fraud Was Executed
The CBI has outlined what it believes was a carefully orchestrated scheme involving multiple procedural violations and financial irregularities.
According to investigators, the alleged conspiracy involved several steps, including:
Opening a bank account without obtaining mandatory government approvals.
Transferring large amounts of public funds under the pretext of creating fixed deposits.
Maintaining no official departmental records relating to the account.
Carrying out fraudulent debit transactions instead of investing the money.
Diverting government funds through banking channels rather than creating legitimate financial instruments.
Investigators believe the account itself may have been created solely to facilitate the diversion of government funds, bypassing normal financial safeguards.
The CBI has stated that these allegations continue to be examined as part of its ongoing investigation.
Part of a Much Larger ₹504 Crore Banking Scam
Officials say the HSPCB case is only one component of a much larger financial fraud involving nearly ₹504 crore belonging to eight different Haryana government departments.
According to the CBI, the broader conspiracy allegedly involved the fraudulent handling of government funds through various methods, including:
Fake fixed deposits.
Non-existent fixed deposit receipts.
Fraudulent banking transactions.
Diversion of government money through shell companies and associated entities.
The agency suspects that the alleged scam was carried out through a sophisticated network involving officials, bankers and private individuals.
The investigation is continuing to examine the financial trail across multiple departments and institutions.
Probe Shifted from Haryana Vigilance to CBI
The investigation was initially conducted by the State Vigilance and Anti-Corruption Bureau (SVACB), Haryana.
However, considering the magnitude of the alleged fraud, the Haryana Government subsequently requested that the Central Bureau of Investigation take over the probe.
After assuming control of the investigation, the CBI widened its scope to examine similar financial transactions across several government departments and linked institutions.
Since then, investigators have been scrutinising banking records, departmental approvals, investment files and financial transactions spanning multiple years.
Charge Sheets Filed Against 17 Accused
The investigation has already resulted in the filing of charge sheets against 17 accused persons and entities.
According to the CBI, those charges include:
Six officials from IDFC First Bank and AU Small Finance Bank.
Three government officials.
Two private companies.
Six private individuals.
The agency had already arrested two senior officers before Pradeep Kumar’s arrest, indicating that the investigation is steadily expanding.
Officials have suggested that additional arrests cannot be ruled out as further evidence is analysed.
Linked Chandigarh Cases Also Under Scanner
Apart from the Haryana banking fraud, the CBI has also taken over two connected financial fraud cases involving government organisations in Chandigarh.
Chandigarh Smart City Limited (CSCL)
In this case, the agency has filed charge sheets against:
Five bank officials.
One official of Chandigarh Smart City Limited.
One private individual.
Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST)
The agency has also filed charge sheets in the CREST case against:
Five bank officials.
Two CREST officers.
Four private individuals.
Two companies.
The investigation into the CREST case has already led to the arrest of a senior Indian Forest Service (IFoS) officer, highlighting the wider ramifications of the alleged banking fraud network.
Investigation Expands Across Multiple States
The arrest of Pradeep Kumar signals the CBI’s determination to unravel what investigators believe is a complex web of financial fraud involving public funds, forged investment instruments, irregular banking practices and the alleged misuse of government accounts.
Officials are continuing to examine the role of government officers, banking personnel, private companies and intermediary entities suspected of facilitating the diversion of public money.
The agency is also analysing financial records to establish the complete flow of funds and identify any additional beneficiaries or conspirators.
Further Action Expected as Probe Progresses
With multiple charge sheets already filed, several senior officials under scrutiny and fresh arrests continuing, the CBI’s investigation into the Haryana banking fraud appears far from over.
Authorities have maintained that the probe remains active and that further legal action will depend on the evidence collected during the course of the investigation.
As investigators continue to trace financial transactions and examine the roles of various stakeholders, the ₹504 crore banking fraud is emerging as one of the most significant alleged cases of financial misconduct involving government funds in Haryana’s recent administrative history.
