The Central Bureau of Investigation (CBI) has arrested senior Haryana IAS officer Pankaj Aggarwal in connection with the IDFC First Bank public funds fraud case, marking a significant development in a probe involving the alleged misappropriation of government money.
Aggarwal, a former principal secretary in the School Education and Agriculture departments of Haryana, was arrested on June 22 and is scheduled to be produced before a court on Tuesday.
According to the CBI, the arrest is linked to alleged irregularities involving accounts of the Haryana School Shiksha Pariyojna Parishad and the Haryana State Agriculture Marketing Board maintained at IDFC First Bank’s Sector 32 branch in Chandigarh.
The agency has alleged that these accounts were opened during Aggarwal’s tenure in violation of Haryana Finance Department guidelines and that funds were transferred beyond prescribed limits. Investigators have estimated the resulting loss to the state exchequer at ₹60.54 crore in this segment of the case.
The case forms part of a larger investigation into an alleged public funds scam involving ₹504 crore belonging to eight Haryana government departments. The CBI claims the funds were siphoned off from the bank branch and routed through shell companies and entities.
The investigation was initially conducted by the Haryana State Vigilance and Anti-Corruption Bureau before being transferred to the CBI following a recommendation from the state government.
So far, the agency has filed chargesheets against 17 accused, including bank officials, government officers, private individuals and corporate entities allegedly linked to the fraud.
The CBI has also referred to related investigations involving Chandigarh Smart City Limited and the Centre for Research in Rural and Industrial Development (CREST), where chargesheets have already been filed. An Indian Forest Service (IFS) officer has also been arrested in connection with those cases.
Officials said Aggarwal’s arrest adds a significant bureaucratic dimension to the investigation, which is focused on tracing the movement of allegedly diverted public funds and identifying all individuals involved in the alleged conspiracy.
The agency said further investigation is underway to uncover the complete financial trail and determine the extent of the alleged fraud.
The arrest is expected to intensify scrutiny of financial transactions involving government departments and public institutions linked to the Chandigarh branch of IDFC First Bank at the centre of the controversy.
