CBI Arrests Second Haryana IAS Officer in Massive Rs 657 Crore Bank Scam

The Central Bureau of Investigation has arrested Pankaj Agarwal, a 2000-batch IAS officer, in connection with a sprawling Rs 657 crore bank fraud case. Agarwal, who previously served as the Administrative Secretary for the Agriculture and Farmers' Welfare Department, is the second senior bureaucrat detained in the investigation, following the earlier arrest of Ram Kumar Singh. The case involves allegations that state officials collaborated with executives from IDFC First Bank and AU Small Finance Bank to siphon public funds from multiple Haryana and Chandigarh government departments into shell companies.

Investigators allege the fraudulent scheme involved diverting funds from accounts belonging to the Haryana State Agriculture Marketing Board and the Haryana School Shiksha Pariyojana Parishad. Specifically, authorities claim Rs 10 crore was funneled from the Agriculture Marketing Development Fund into shell entities including SRR Planning Gurus Limited and Mannat Contractors, while over Rs 50 crore was allegedly siphoned from school education department funds. Financial discrepancies between the CBI’s Rs 657 crore estimate and the Enforcement Directorate’s Rs 645 crore assessment remain part of the ongoing probe into the systemic nature of these unauthorized account openings.

Eight senior IAS officers remain under the CBI’s scanner as the investigation intensifies into the systemic violation of Finance Department guidelines. With two high-ranking officials now in custody, the agency continues to examine the roles of other administrators, including Mohd Shayin, Mani Ram Sharma, Pardeep Kumar, Vineet Garg, Saket Kumar, and DK Behera. The deepening probe signals significant administrative instability, potentially forcing a comprehensive audit of all government department accounts managed during the affected tenures.