The Haryana government on Friday suspended 2000-batch IAS officer Pankaj Agarwal, who was arrested in connection with the Rs 657 crore scam involving IDFC First Bank and AU Small Finance Bank. The suspension order, issued by Chief Secretary Anurag Rastogi, cited that Agarwal had been in CBI custody for more than 48 hours, triggering a deemed suspension under Rule 3(2) of the All India Services (Discipline & Appeal) Rules, 1969. Agarwal will receive a subsistence allowance as per Rule 4 of the same rules until further orders.
CBI Arrest and Judicial Custody
The CBI arrested Agarwal on June 22. A day later, he was remanded to CBI custody for two days. He is currently lodged in judicial custody at Ambala jail. The suspension order stated that Agarwal was detained in official custody for a period exceeding 48 hours, leading to his automatic suspension under the service rules.
Prior to his suspension, Agarwal served as Principal Secretary of the Architecture Department in the Haryana government. He was considered close to the BJP government and had previously held the post of Chief Electoral Officer, overseeing the 2024 Haryana Assembly elections. He also acted as Returning Officer for the March 16 Rajya Sabha elections, where he faced allegations of favouring BJP-backed Independent candidate Satish Nandal by cancelling Congress votes.
Controversial Role in Rajya Sabha Polls
Following the Rajya Sabha elections, the Congress Legislative Party submitted a memorandum to Haryana Governor Ashim Kumar Ghosh on March 19, accusing Agarwal of arbitrary conduct. The memorandum stated: "More shameful and painful was the notorious shrewdness and arbitrariness in the conduct of the Returning Officer… He deliberately and illegally rejected the Congress MLAs' votes, accepted and allowed the invalid votes in favour of the BJP and the Independent candidates."
After Agarwal's arrest, the Congress renewed its attack. On June 23, Rohtak MP Deepender Hooda posted on X: "The arrest has exposed the BJP's corrupt face. During the Rajya Sabha elections, this officer had made a concerted effort to ensure the victory of a BJP-backed candidate. The incident brought back memories of the brazen theft of councillors' votes by returning officer Anil Masih during the Chandigarh mayoral election. The BJP government exploited this corrupt officer to serve its own political interests by using the threat of action against him as leverage."
Allegations of Embezzlement
According to the CBI, Agarwal was involved in siphoning off more than Rs 50 crore from the Haryana School Shiksha Pariyojana Parishad while serving as Principal Secretary of School Education. He is also accused of embezzling Rs 10 crore from the Haryana State Agriculture Marketing Board during his tenure as Principal Secretary of Agriculture and Farmers' Welfare.
On April 8, the CBI took over the case. The same day, Agarwal was moved to the post of Principal Secretary of the Architecture Department, while other accused IAS officers were also downsized. This came despite an FIR in the Rs 657 crore bank scam being registered by the State Vigilance and Anti-Corruption Bureau on February 23 and Agarwal being under the scanner.
Previous Key Postings
Three days after acting as Returning Officer for the Rajya Sabha elections, Agarwal received a key posting on March 19. He was appointed Principal Secretary of Irrigation and Water Resources; Adviser, Haryana Saraswati Heritage Board; and Principal Secretary of Mines and Geology Department. These appointments occurred despite the ongoing investigation into the bank scam.
The suspension order, issued under Rule 3(2) of the All India Services (Discipline and Appeal) Rules, 1969, states that "A member of the Service who is detained in official custody, whether on a criminal charge or otherwise, for a period longer than forty-eight hours, shall be deemed to have been suspended by the Government concerned under this rule." Agarwal's suspension will remain in effect until further orders.
