Haryana Govt Clears CBI Interrogation of 8 IAS Officers in ₹590-Crore Bank Fraud Probe
In a major escalation of the high-profile ₹590-crore government funds fraud case involving IDFC FIRST Bank and AU Small Finance Bank, the Haryana government has granted permission to the Central Bureau of Investigation (CBI) to interrogate eight IAS officers suspected to be linked to the alleged financial irregularities.
The decision marks a crucial turning point in the investigation, which has steadily expanded from bank officials and departmental employees to senior members of the state bureaucracy. The sanction was granted under Section 17A of the Prevention of Corruption Act, a legal provision that mandates prior government approval before public servants can be investigated for actions connected to their official duties.
According to officials familiar with the matter, the CBI had initially sought approval to question five IAS officers after several accused individuals made disclosure statements during interrogation and investigators gathered supporting documentary evidence. However, as the probe progressed, three more senior officers reportedly came under scrutiny, prompting the agency to request permission to interrogate a total of eight officers.
The Haryana government has now approved the request, clearing the way for the CBI to formally summon and question the officers once written authorization is officially communicated to the agency.
Among those reportedly under the scanner is a 1991-batch IAS officer considered one of the most influential bureaucrats in Haryana. Officers belonging to the 2000 and 2002 batches have also been named during the course of the investigation. Additionally, two officers promoted from the Haryana Civil Services — Pradeep Kumar of the 2011 batch and R.K. Singh of the 2012 batch — are already under suspension in connection with the matter.
Investigators allege that employees of IDFC FIRST Bank and AU Small Finance Bank conspired with public servants from various Haryana government departments to illegally divert and misuse government funds amounting to nearly ₹590 crore. The alleged fraud primarily revolves around suspicious placement and handling of government deposits in private banks through questionable administrative and financial approvals.
Officials involved in the investigation are examining whether mandatory financial safeguards were bypassed, whether due process was ignored while approving fund transfers, and whether there was active collusion between bank employees and government officials.
As part of the ongoing investigation, the CBI recently conducted extensive raids at multiple locations in Chandigarh and Panchkula. During the searches, investigators reportedly seized financial documents, digital devices, transaction records, and other crucial evidence believed to be linked to the alleged scam.
So far, the investigation has resulted in the arrest of 16 individuals, including bank officials and several others allegedly connected to the fraudulent transactions. Sources indicate that fresh leads and disclosures continue to emerge as interrogations and forensic analysis of financial records progress.
The origins of the case trace back to February 2026, when Haryana’s Development and Panchayats Department constituted a special inquiry committee after irregularities were detected in government accounts maintained with the two private banks. The committee reportedly uncovered prima facie evidence suggesting large-scale financial misconduct and misuse of public funds.
Following the committee’s findings, the matter was referred to the State Vigilance and Anti-Corruption Bureau (SV&ACB). An FIR was subsequently registered on February 23, 2026, at the SV&ACB police station in Panchkula under provisions of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita (BNS).
Given the scale and sensitivity of the allegations, the investigation was later handed over to the CBI for a more comprehensive and independent probe.
With the interrogation of eight IAS officers now approved, investigators are expected to closely examine the chain of administrative decisions that allegedly enabled the diversion of massive amounts of public money. The probe is also likely to focus on determining whether the officials involved were negligent, failed to exercise oversight, or knowingly facilitated the transactions.
The outcome of the investigation could have far-reaching consequences for administrative accountability, financial governance, and the handling of government deposits in private financial institutions across Haryana.
