The Central Bureau of Investigation (CBI) has arrested senior IAS officer Pankaj Aggarwal in connection with the alleged misappropriation of government funds from accounts linked to the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agriculture Marketing Board (HSAMB). Investigators claim the fraud caused a loss of Rs 60.54 crore to the Haryana government and forms part of a much larger scam involving hundreds of crores of public money.
Aggarwal, who served as Principal Secretary of the School Education and Agriculture departments during the relevant period, was arrested on June 22 and is being produced before a court.
CBI probe uncovers alleged irregularities
The investigation was transferred to the CBI after a request from the Haryana government. According to the agency, the probe revealed that bank accounts belonging to HSSPP and HSAMB were opened at the Sector 32 branch of IDFC First Bank in Chandigarh in violation of guidelines issued by the Haryana Finance Department.
The CBI alleged that government funds were transferred into these accounts beyond the prescribed financial limits. It further claimed that fraudulent transactions carried out through the accounts resulted in the diversion of public money, leading to a net loss of Rs 60.54 crore to the state exchequer.
The agency said it has gathered incriminating evidence linking Aggarwal to the alleged irregularities during its investigation.
Part of a larger Rs 504 crore banking scam
Investigators say the HSSPP and HSAMB case is one component of a wider financial fraud involving approximately Rs 504 crore belonging to eight Haryana government departments.
According to the CBI, funds deposited in accounts at the Sector 32 branch of IDFC First Bank were allegedly siphoned off through a network of shell entities. The investigation was originally handled by the Haryana State Vigilance and Anti-Corruption Bureau before being transferred to the central agency.
The CBI continues to examine the money trail to determine how the funds were diverted and identify everyone involved in the alleged conspiracy.
Several officials and bankers already chargesheeted
The agency has so far filed chargesheets against 17 accused in the broader case. Those named include six officials from IDFC First Bank and AU Small Finance Bank, three Haryana government officials, two companies and six private individuals.
The CBI has also arrested senior IAS officer R K Singh in a related case involving the alleged misappropriation of funds linked to the Municipal Corporation, Panchkula. Singh has since been remanded to judicial custody after the completion of his police remand.
Linked investigations in Chandigarh
Apart from the Haryana cases, the CBI has also taken over investigations into two related matters in Chandigarh involving Chandigarh Smart City Limited (CSCL) and the Centre for Research and Industrial Staff Performance (CREST).
In the CSCL case, the agency has chargesheeted five bank officials, one CSCL official and one private individual. In the CREST case, chargesheets have been filed against five bankers, two CREST officials, four private individuals and two companies. A senior Indian Forest Service (IFS) officer has also been arrested in connection with the CREST investigation.
Investigation continues
The CBI said investigations are ongoing to trace the complete flow of the allegedly misappropriated public funds and identify all individuals and entities that may have played a role in the fraud. The agency is expected to continue examining financial records, banking transactions and the involvement of public officials as the case progresses.
