The Central Bureau of Investigation (CBI) is investigating eight IAS officers from Haryana for their alleged role in a Rs 657-crore fraud involving IDFC First Bank and AU Small Finance Bank. According to the CBI, the accused officers bypassed rules to open bank accounts for eight state government departments and facilitated the transfer of funds to shell entities.
How the fraud worked
Investigators found that 236 fraudulent debit transactions worth Rs 818 crore were carried out from 12 accounts — Rs 96.61 crore from AU Small Finance Bank and the remainder from IDFC First Bank. Additionally, 84 fraudulent credit transactions worth Rs 214 crore were executed, with AU Small Finance Bank accounting for Rs 72.09 crore. The net loss to the banks and depositors is estimated at Rs 504.36 crore.
Role of IAS officer Mohd Shayin in HPGCL scam
The Haryana Power Generation Corporation Limited (HPGCL) Dry Fly Ash Fund account was opened with IDFC First Bank in Chandigarh on February 27, 2024, despite the bank not being empanelled with the state government at the time. The proposal was submitted by then branch manager Ribhav Rishi, the alleged mastermind, and addressed to then HPGCL Managing Director Mohd Shayin (IAS).
When Senior Accounts Officer Deepti Kaushik flagged the lack of empanelment to Director of Finance Amit Dewan, he reportedly said it would be dealt with later. By July 2024, IDFC First Bank got empanelled.
According to CBI papers accessed by The Tribune, around November 10, 2024, Shayin called Chief Accounts Officer Bahadur Singh Gosain to his cabin, where Ribhav Rishi was present. Shayin allegedly directed Gosain to arrange funds for the Dry Fly Ash account. Gosain later told the CBI that Shayin had agreed to place around Rs 50 crore in the account.
Gosain then met Dewan, who said since it was the MD's order, they had to comply. To make the transaction appear legitimate, it was decided to prematurely break a fixed deposit with IndusInd Bank and compensate the loss of interest with a higher rate from IDFC First Bank. Ribhav Rishi offered 14% interest from November 11, 2024, to March 28, 2025, but the letter was later found to be forged.
On November 11, 2024, after two calls from Shayin, Gosain noted "as directed, please transfer the amount of Rs 50 Crores to IDFC First Bank by partial premature withdrawal of funds from FD with IndusInd Bank." Shayin approved the withdrawal. The HPGCL account saw six fraudulent debit transactions totalling Rs 59.46 crore and four fraudulent credit entries of Rs 5.79 crore, resulting in a misappropriation of Rs 53.67 crore.
Pollution board corruption
IAS officer Vineet Garg, Chairman of the Haryana State Pollution Control Board (HSPCB) from December 2, 2024, to April 9, 2026, and Member Secretary Pardeep Kumar are also under scrutiny. The HSPCB account with IDFC First Bank was opened on February 27, 2025, without finance department approval.
On March 5, 2025, Pardeep Kumar proposed investing Rs 50 crore as FDR, approved by Garg on March 8. Instead of being invested, the funds were diverted to CAPCO Fintech Services, a shell entity. A further Rs 17.90 crore was siphoned off through Swastik Desh Projects and SRR Planning Gurus Pvt Ltd. The CBI alleges that accused Manish Jindal exploited his prior relationship with Garg to secure the parking of funds, receiving Rs 25 lakh cash, two iPhone Pro 17s, and 75 gm gold.
Both officers continued to concentrate funds in IDFC First Bank beyond the Rs 50-crore ceiling imposed by a Finance Department circular, taking exposure over Rs 100 crore. Pardeep Kumar was arrested on June 30. HSPCB lost Rs 169.69 crore from two accounts with 49 fraudulent debit transactions and 6 credit entries.
Panchkula Municipal Corporation misappropriation
IAS officer Ram Kumar Singh, Commissioner of Municipal Corporation Panchkula, is accused of opening an account with IDFC First Bank on October 29, 2025. There were 22 fraudulent debit entries worth Rs 100 crore through six cheques bearing his and Senior Accounts Officer Surinder Jain's signatures, and three credit entries of Rs 20.54 crore. The total loss was Rs 79.46 crore.
The CBI says Singh approved the account opening in conspiracy with Ribhav Rishi, Abhay Kumar, and Naresh Kumar. He allegedly issued cheques knowing they would be misappropriated and continued to do so even after discrepancies were pointed out by his own office.
Education department embezzlement
IAS officer Pankaj Agarwal, who served as Principal Secretary of School Education from December 10, 2024, to June 16, 2025, and later Agriculture, is also implicated. On July 1, 2025, he sent the name and number of Ribhav Rishi via WhatsApp to Rajesh Sangwan, Controller of Finance and Accounts of the Haryana State Agriculture Marketing Board (HSAMB). The next day, Ribhav Rishi and Shamim Dar visited HSAMB, and a proposal to open an account was submitted without finance department approval or comparative analysis. Rs 9.5 crore was transferred from Yes Bank to IDFC First Bank, and later a cancelled cheque was used to siphon off Rs 10 crore.
The Haryana School Shiksha Pariyojna Parishad (HSSPP) account was opened on January 4, 2025, despite existing accounts with IDBI and Kotak Mahindra. Agarwal marked the proposal from Ribhav Rishi to Director Jitender Kumar and Controller Randhir Singh. A notesheet proposed depositing Rs 100 crore, claiming higher interest, but no approval or quotations were obtained. The cap on deposits was breached, and the account was opened in Sector 32, Chandigarh, violating proximity norms. The loss was Rs 53.86 crore.
Panchayat department robbed
The MMGAY 2.0 Panchayat Director account was opened on September 26, 2025, at IDFC First Bank, suffering a loss of Rs 48.90 crore from 16 fraudulent debit transactions and three credit entries. Cheques purportedly bore the signature of IAS officer DK Behera, but two cheques were dated after he left the department. The genuineness of signatures is pending forensic examination. IAS Saket Kumar, Commissioner and Secretary of the department, is yet to be questioned.
From the Haryana Labour Welfare Board's IDFC account, 12 fraudulent debit transactions worth Rs 50.05 crore occurred. IAS Mani Ram Sharma, former Labour Commissioner, is being questioned.
