A Panchkula court on Friday sent suspended IAS officer Ram Kumar Singh to three-day CBI custody in connection with the Rs 657-crore bank scam. The CBI informed the court that Singh admitted the signatures on the cheques issued to the co-accused were his own.
Singh was arrested on Thursday following a search at his residences in Karnal and Panchkula. The scam involves officials of IDFC First Bank and AU Small Finance Bank, who allegedly colluded with government officials, including IAS officers, to siphon off funds from bank accounts of eight Haryana government departments and two Chandigarh Administration departments. While the CBI has pegged the loss at Rs 657 crore, the Enforcement Directorate, which is also investigating, claims a loss of Rs 645 crore.
Role in the Conspiracy
The CBI submitted before the court that during the period of the scam, Singh held charge as Commissioner of the Municipal Corporation, Panchkula, and Commissioner of the Municipal Council, Kalka. In furtherance of a criminal conspiracy with co-accused including Ribhav Rishi, Abhay Kumar, and Naresh Kumar, he approved opening a new bank account at IDFC First Bank, Sector 32, Chandigarh, and transferring funds exceeding Rs 100 crore from the account of the Municipal Corporation, Panchkula, in violation of Finance Department guidelines.
The CBI added that Singh issued cheques to the co-accused with full knowledge that they would not be used for creating fixed deposits but for misappropriation, and he admitted the signatures on those cheques were his own. Even after discrepancies in the dates of fixed deposit creation and corresponding debit entries were brought to his notice, Singh proceeded to issue further cheques instead of investigating. One cheque was used for further misappropriation, and three cheques bearing his signatures remain missing.
Digital Evidence and Illegal Gratification
The CBI told the court that digital evidence recovered during investigation disclosed that Singh received illegal gratification as a quid pro quo for his participation in the conspiracy. He exchanged incriminating communication with co-accused via his mobile phone. However, upon seizure, the original communication was found missing or deleted, and Singh failed to provide any explanation or assistance in retrieving it, indicating a deliberate attempt to suppress or destroy evidence.
Seeking three-day custody, the CBI argued that Singh, as a senior IAS officer, wielded considerable influence over persons connected with the conspiracy, including subordinate officials and material witnesses. There was a real and credible apprehension that if not taken into custody, he would use his position to influence witnesses. Singh remained non-cooperative and withheld material information.
Arrest of Former Superintendent
The CBI had also arrested former superintendent of the Development and Panchayats Department, Prince Sharma, on Thursday. He was produced before the court on Friday. According to the CBI, Sharma colluded with officials of IDFC First Bank and Haryana government officials, having his mobile number registered on account-opening forms of the Municipal Corporation, Panchkula, and the Development and Panchayats Department for the Mukhyamantri Gramin Awas Yojana 2.0. He was neither part of the team handling the scheme nor posted in the Municipal Corporation.
The CBI alleged that insertion of his number was part of the conspiracy to keep the department unaware of fraudulent transactions and confirmation calls. He attended confirmation calls with co-conspirators and handed over his SIM card to other members of the conspiracy. Sharma deleted chats with co-accused, creating risk of evidence tampering.
Custody and Investigation
Seeking custody of both Singh and Sharma, the CBI said the proceeds of crime, including properties and gold purchased with siphoned funds, need to be identified and recovered, requiring custodial interrogation. The role of senior government functionaries is yet to be ascertained, and the money trail is being traced.
