The Central Bureau of Investigation (CBI) has begun its investigation into a significant Rs 590 crore alleged fraud involving funds from the Haryana government. An FIR was officially registered on April 8, 2026, after concerns were raised regarding the diversion of public money from accounts at IDFC First Bank and AU Small Finance Bank in Panchkula. This incident reportedly involved the use of forged documents, unauthorised transactions, and a larger criminal conspiracy.

In connection with this case, two IAS officers, R K Singh and Pradeep Kumar, have been suspended. Furthermore, other officials are currently under investigation as the situation continues to develop. The allegations revolve around the misappropriation of funds tied to a government scheme managed by the Development and Panchayats Department, notably the MMGAY-2.0 programme.

The investigation indicates that the fraud occurred over a span of five months, specifically from September 26, 2025, to February 23, 2026. It is reported that around Rs 50 crore was deposited into two separate accounts at IDFC First Bank, with an additional Rs 25 crore in AU Small Finance Bank. Investigators have revealed a series of suspicious transactions through which these funds were diverted.

Investigation Findings and Allegations

The FIR, reviewed by investigative teams, highlights multiple procedural breaches on the part of the banks involved. Allegations include incomplete documentation during the account opening process and missing transaction records. Moreover, high-value transaction alerts were allegedly linked to an individual’s mobile number that was not associated with any official account holder.

Both banks are reportedly under scrutiny, with AU Small Finance Bank facing claims of inadequate cooperation during the investigation. The investigation has also pointed to a network of shell companies supposedly facilitating the laundering of these diverted funds through fictitious transactions and manipulated financial entries. Names of entities involved in this alleged operation include Swastik Desh Project and R S Traders.

A committee established to carry out an enquiry earlier in February 2026 failed to find evidence supporting the legitimate utilisation of the funds, indicating that all transactions were fraudulent in nature.

Actions Taken Against IAS Officers and Further Developments

In light of the unfolding situation, the Haryana government has swiftly suspended IAS officers RK Singh and Pradeep Kumar, both of whom occupy significant roles within the state administration. Their joint bank accounts and assets, reportedly valued at several crores, are currently under the scrutiny of vigilance teams involved in the investigation. Additional senior officers are also being examined, with sources suggesting that two to four more individuals may be implicated.

The government has implemented a substantial bureaucratic reshuffle, transferring 15 IAS officers. This action is perceived as part of a broader effort to address systemic issues within the governance framework of Haryana.

The CBI’s takeover of this case follows an initial registration by the State Vigilance and Anti-Corruption Bureau based on a complaint from Inspector Amit Kumar. Due to the complexity and potential interstate and international ramifications of the fraud, the Haryana government sought the expertise of the CBI, granting permission on March 25. The agency has since advanced its investigation, invoking robust statutes under the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita. Approximately 15 arrests have been reported to date as the CBI aims to uncover the extensive network believed to be exploiting gaps in oversight and governance.

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