CBI Arrests Two Officials in Rs 657 Crore Haryana Labour Board Bank Scam
The Central Bureau of Investigation (CBI) has arrested an accounts officer and a clerk in connection with the Rs 657 crore bank scam, shifting the probe to the Labour Department. The two officials are allegedly responsible for the misappropriation of Rs 50.05 crore from the bank account of the Haryana Labour Welfare Board (HLWB), a component of the larger scam.
Accounts officer Jugal Kishore and accounts clerk Amit Kumar were produced before the CBI Special Court in Panchkula on Wednesday, where the court remanded them to two days of police custody.
Role of Accounts Officer Jugal Kishore
According to the CBI, Jugal Kishore served as Accounts Officer of the Labour Welfare Board from August 21, 2024, overseeing all financial matters and acting as the authorized signatory for the board's account with IDFC First Bank, Sector 32, Chandigarh. Kishore is accused of proposing the committee for shortlisting banks and signing all relevant letters, cheques, and correspondence.
The CBI found that Kishore signed the Account Opening Form for a savings account with IDFC First Bank, despite the competent authority only approving the opening of a fixed deposit. By opening a savings account, he allegedly enabled the creation of an operable account through which funds were siphoned. He also signed fund-transfer letters, including one transferring Rs 50 crore into the IDFC First Bank savings account.
Fraudulent Transactions and Shell Entities
The then relationship manager of IDFC First Bank, Abhay Kumar, was the lead generator for the savings account. The CBI identified 12 fraudulent debit transactions from the account. Of these, Rs 15.50 crore was transferred to Swastik Desh Projects, Rs 21.11 crore to Capco Fintech Services, and Rs 13.44 crore to SRR Planning Gurus Pvt Ltd. All three entities are shell companies floated by the accused to siphon funds.
Chirag Gulati of IDFC First Bank informed Kishore that the fixed deposits did not exist and that Abhay Kumar's services had been terminated. Despite this, Kishore did not investigate the misappropriation and continued to deal with Abhay Kumar, the CBI submitted to the court.
Amit Kumar's Involvement
Amit Kumar, who has been an accounts clerk at the Labour Welfare Board since January 1, 2019, initiated the note-sheet for investing board funds in fixed deposits and drafted letters inviting quotations from banks and for opening fixed deposits. The CBI told the court that Kumar played an active role in opening the unauthorized savings account with IDFC First Bank and in concealing the fraud of over Rs 50 crore.
The CBI noted that the note-sheet processed by Kumar did not record at any stage that a savings account (as distinct from the sanctioned fixed deposit) was being opened, thereby keeping the existence of an operable account hidden from the competent authority.
Amit Kumar's counsel, Yavneet Dhakla, argued that Kumar was merely a clerk and not an authorized signatory, and opposed his custody. However, the CBI claimed that Kumar received the forged fixed deposit receipt from the accused relationship manager, Abhay Kumar, and placed it in the departmental file, lending it official color and perpetuating the false impression that the funds were invested in a fixed deposit. He continued to deal with Abhay Kumar even after his services were terminated and made no inquiry with IDFC First Bank about the misappropriation, even after Abhay Kumar's arrest.
Ongoing Investigation
The CBI now aims to uncover how the bank account was opened without departmental record or approval, on whose direction, and details of any illegal gratification received by the accused.
