Haryana Power Finance Director Arrested in Rs 590 Crore Fraud Probe
Panchkula: In a significant development in the ongoing investigation into a massive Rs 590 crore fraud, Amit Diwan, the Director of Finance at the Haryana Power Generation Corporation Limited (HPGCL), has been arrested by the State Vigilance and Anti-Corruption Bureau. The arrest marks a crucial escalation in the probe that has already netted multiple high-profile individuals.
Allegations of Deliberate Violation and Collusion
According to the Vigilance Bureau's remand papers presented in court, Diwan was posted as the finance director when two unauthorized accounts were opened at IDFC First Bank in Sector-32, Chandigarh, and AU Small Finance Bank. The ACB alleges that "the procedure laid down by the government was deliberately violated with ulterior motive."
The bureau further claims that Diwan "connived with key accused specifically Ribhav Rishi and actively assisted him in commission of offences as alleged." Most damningly, the ACB states that Diwan "accepted hefty illegal gratification for the same as substantiated through material seized or statements of witnesses."
Court Proceedings and Expanding Investigation
Diwan was presented before a local court on Thursday, which granted the ACB a three-day remand for further interrogation. Meanwhile, three other accused individuals identified as Rajesh, Randhir, and Rajan were sent to judicial custody on the same day.
This complex financial fraud investigation has been unfolding for several weeks, with the first arrests occurring on February 24, 2026, when Ribhav Rishi, Abhay Kumar, Swati Singla, and Abhishek Singla were taken into custody. Investigators have revealed that the accused utilized sophisticated financial channels and shell entities to systematically divert public funds.
Special Investigation Team and Additional Arrests
In response to the scale of the alleged corruption, authorities constituted a Special Investigation Team (SIT) on February 27 to coordinate the probe. The investigation has since expanded significantly, with Naresh Kumar Bhuwani, a government official, and Manish Jindal arrested on February 28.
Bank officials and employees have also been implicated in the scheme. Seema Dhiman, Priyanka Bhatoa, and Anuj Kaushal were arrested for allegedly facilitating unauthorized transactions, forging financial records, and processing counterfeit financial instruments.
Business Connections and Senior Officials Implicated
The web of alleged corruption extends beyond government and banking circles. Recently, Rajan Singh Katodiah, owner of Sawan Jewellers in Chandigarh, was arrested for his purported role in the conspiracy, suggesting possible money laundering through business channels.
Furthermore, senior finance officers Rajesh Sangwan and Randhir Singh have been arrested for allegedly violating government financial norms and accepting illegal gratification. Their involvement indicates potential systemic issues within financial oversight mechanisms.
Ongoing Investigation and Broader Implications
Vigilance officials have stated that the investigation remains active and ongoing, with more arrests and revelations anticipated as authorities continue to trace the complex money trail. This case is being viewed as a major corruption scandal with significant implications for the public exchequer and governance standards in Haryana's power sector.
The systematic nature of the alleged fraud—involving multiple layers of government officials, banking personnel, and private business entities—suggests a coordinated effort to exploit financial systems. As the SIT continues its work, authorities are expected to uncover further details about how such a substantial amount of public money was allegedly diverted through illicit channels.
