The Central Bureau of Investigation (CBI) on Thursday arrested former Panchkula municipal corporation commissioner Ram Kumar Singh in connection with the Haryana government funds misappropriation case. Singh is the first Indian Administrative Service (IAS) officer to be arrested in the scam, which involves the alleged siphoning of public funds.
Details of the Fraud
According to the CBI, the misappropriation involved the alleged diversion of approximately Rs 79.46 crore from the corporation's account maintained at the Chandigarh Sector 32 branch of IDFC First Bank. The account was reportedly opened in violation of Haryana finance department guidelines and was used as a conduit for fraudulent transactions. Investigators claim this is part of a larger scam where around Rs 504 crore belonging to eight Haryana government departments was siphoned off through forged or non-existent fixed deposits and debit notes, later routed to shell entities.
Role of Ram Kumar Singh
Ram Kumar Singh served as Municipal Commissioner in Panchkula from July 2025 to January 2026. Investigators alleged that Singh, in connivance with bank officials, handed over multiple signed cheques through intermediaries under the pretext of creating fixed deposits. However, no fixed deposits were created, and the funds were instead siphoned off to shell entities allegedly controlled by bank officials.
The CBI stated that its investigation found the misappropriation was carried out with the knowledge and active participation of the then municipal commissioner and the corporation's senior accountant, who had been arrested earlier. Searches at Singh's residences in Chandigarh and Karnal reportedly led to the recovery of several incriminating documents.
Government Action and Investigation
The Haryana government had suspended Singh and another IAS officer within a fortnight of the registration of the case by the State Vigilance and Anti-Corruption Bureau on February 23. The investigation was later handed over to the CBI in April. The agency has so far secured permission from the Haryana government to prosecute or question seven IAS officers in connection with the wider scam. The CBI is examining the role of senior bureaucrats and officials involved in the management and operation of government accounts linked to the fraud.
Chargesheet and Accused
So far, the CBI has chargesheeted 17 accused, including six officials of IDFC First Bank and AU Small Finance Bank, three Haryana government officials, two companies, and six private individuals in the wider Rs 504 crore scam.
