Chandigarh: A Panchkula court on Friday remanded suspended Haryana cadre IAS officer Ram Kumar Singh and development and panchayat department superintendent Prince Sharma to three days of CBI custody in connection with the Rs 593-crore municipal funds embezzlement case.
The Central Bureau of Investigation (CBI) arrested Singh from his Karnal residence and Sharma from Chandigarh on Thursday. Both were produced before additional district and sessions judge Bikramjit Arora, where the agency sought custodial interrogation.
During the hearing, the CBI told the court that Singh allegedly admitted to opening a Panchkula municipal corporation account in IDFC First Bank in violation of rules. He is also stated to have acknowledged being aware of irregularities and suspected misappropriation of funds, but failed to act despite red flags raised by subordinate officials.
The agency said Sharma played a key role in operating the accounts, allegedly providing the mobile number linked to the bank account and to shell firms through which nearly Rs 79 crore was routed.
Sources said investigators have traced fund flows from the IDFC First Bank account to multiple beneficiaries, including accounts allegedly linked to Singh's relatives. The CBI is also examining assets owned by Singh and his family. Preliminary findings suggest he owns several residential and commercial properties, while his wife is linked to hotels, showrooms and a beer manufacturing unit.
Seeking custody, the agency told the court the accused were not cooperating and needed to be confronted with documents and digital evidence. It added that recoveries are yet to be made.
The case pertains to the alleged diversion of Rs 593 crore belonging to urban local bodies through accounts in IDFC First Bank and AU Small Finance Bank. Investigators have found that funds were siphoned off via shell entities and layered transactions.
The case dates back to February, when the Haryana State Vigilance and Anti-Corruption Bureau registered an FIR into the fraud involving funds of eight government departments. The state agency had made 16 arrests, including bankers and private individuals.
The CBI took over the probe in April following directions from the Haryana government. It has sought sanction to question and prosecute seven IAS officers whose names surfaced during the investigation. In the past fortnight, the agency has filed two chargesheets against 16 accused and is probing the role of government officials, bank employees and private entities suspected of facilitating the fraud.
