The Haryana government has suspended senior IAS officer Pankaj Agarwal following his arrest by the Central Bureau of Investigation (CBI) in connection with the alleged Rs 657-crore IDFC First Bank scam. The suspension comes just days after Agarwal was taken into custody for his alleged role in a scheme that involved misappropriating government funds.

Agarwal, who belongs to the 2000 Haryana cadre, was apprehended earlier in the week and was subsequently produced before a court on June 23. He is currently in judicial custody as the investigation unfolds regarding his involvement in fraudulent activities linked to IDFC First Bank and AU Small Finance Bank.

The CBI has accused Agarwal of playing a significant role in the alleged diversion of over Rs 60 crore from various state departments, specifically the Haryana School Shiksha Pariyojana Parishad (HSSPP) and the Haryana State Agriculture Marketing Board (HSAMB). The agency alleges that during his tenure as principal secretary, bank accounts were established at IDFC First Bank’s Chandigarh Sector 32 branch in violation of established government guidelines.

Details of the Alleged Scam

The allegations against Agarwal detail a scheme where funds were reportedly transferred to these accounts beyond stipulated limits, and fraudulent transactions were executed that led to the siphoning off of the money. “These accounts were opened during the tenure of Pankaj Agarwal, the then Principal Secretary. Investigation revealed that through fraudulent transactions in the accounts of these departments, funds were misappropriated, causing a net loss of Rs 60.54 crore to the government,” stated a CBI spokesperson.

This fraud within the two departments is reportedly part of a broader investigation into numerous financial irregularities, with reported siphoning of Rs 504 crore from eight Haryana government departments and an additional Rs 153 crore from the Chandigarh administration. The total purported embezzlement thus stands at Rs 657 crore.

The CBI initiated its investigation based on a reference from the Haryana government and has already filed charges against 17 suspects in this case. This includes six officials from both IDFC First Bank and AU Small Finance Bank, several government officials, and various private individuals. The agency noted, “During the investigation, incriminating evidence against Pankaj Agarwal has been collected.”

Additional Cases and Investigations

Agarwal previously served as the principal secretary in Haryana’s education department from December 2024 to June 2025 and has also held the position in the agriculture department. The overarching investigation continues to expand, with notable developments involving another senior IAS officer, R K Singh, who was arrested concerning alleged financial misconduct within the Municipal Corporation of Panchkula and is now in judicial custody following the conclusion of his police remand.

The CBI is concurrently probing two related cases in Chandigarh: one involving Chandigarh Smart City Limited (CSCL) and the Chandigarh Municipal Corporation, and another concerning CREST Chandigarh. Chargesheets have been filed against five bankers and officials connected to these entities, indicating a widespread inquiry into financial mismanagement and corruption.

Further investigations have led to chargesheets being presented against five bankers, one CSCL official, and one individual linked to the CSCL case, as well as multiple individuals and firms in the CREST case. Notably, a senior Indian Forest Service officer has already been arrested in connection to the CREST investigation, highlighting the extensive nature of the inquiries being pursued by the CBI.”

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