The Central Bureau of Investigation (CBI) has arrested senior Haryana IAS officer Pankaj Agarwal in connection with a major government fund fraud case linked to IDFC First Bank. The arrest took place on Monday evening after investigators found evidence of his alleged involvement in the misuse of public money.
Agarwal was produced in a Panchkula court on Tuesday morning. The court sent him to CBI custody for two days so that the agency can continue questioning him and collect more details about the case.
The case is related to the misappropriation of government funds that were kept in IDFC First Bank’s Sector 32 branch in Chandigarh. According to the CBI, large sums of money belonging to Haryana government departments were moved into bank accounts in violation of official financial rules.
At the time when these accounts were opened, Pankaj Agarwal was serving as principal secretary in two important departments — the School Education Department and the Agriculture Department. Investigators say the accounts were opened under the Haryana School Shiksha Pariyojna Parishad and the Haryana State Agriculture Marketing Board.
These accounts, the CBI claims, were opened without following the state finance department’s guidelines. Normally, government funds must be deposited and handled according to strict rules. These rules are meant to protect public money and prevent fraud.
However, in this case, investigators found that much more money than allowed was transferred into the accounts. After that, a number of suspicious and fraudulent transactions were made.
The CBI said these transactions led to a direct loss of ₹60.54 crore to the Haryana government in the education and agriculture departments alone. This is only one part of a much larger scam.
The investigation was first started by Haryana authorities, but later the state government requested the CBI to take over in May. Since then, the agency has expanded its investigation and uncovered what appears to be a much bigger fraud network.
Officials say the scam was not limited to just two departments. It involved eight Haryana government departments and total misappropriation of nearly ₹504 crore.
According to investigators, this money was moved through the same IDFC First Bank branch and then routed into different shell companies and private entities. Shell companies are fake or inactive businesses often used to hide illegal financial activity.
The CBI believes this was a planned and organised operation involving multiple people, including bank officials and government employees.
The CBI has already filed charges against 17 people in connection with the larger Haryana fund scam. These include six bank officials from IDFC First Bank and AU Small Finance Bank, three government officials, two companies, and six private individuals.
Investigators believe these people worked together to move government money illegally and hide the transactions.
The arrest of Pankaj Agarwal is seen as a major development because he is one of the highest-ranking officers arrested so far in this case. His role is being closely examined to understand how such large amounts of public money were transferred without raising alarms.
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The agency says it has gathered strong evidence against him, but the investigation is still ongoing.
This is not the only case involving senior Haryana officers. Another IAS officer, RK Singh, was earlier arrested in a separate case involving fund misuse in the Municipal Corporation of Panchkula. His police custody has ended, and he has now been sent to judicial custody.
These back-to-back arrests have raised serious concerns about financial management and monitoring in government departments.
At the same time, the CBI has also widened its anti-corruption action in the Chandigarh region.
The agency has taken over two more corruption cases from Chandigarh. One case is linked to Chandigarh Smart City Limited (CSCL) and the Chandigarh Municipal Corporation. The second case is connected to CREST, the Chandigarh Renewable Energy and Science and Technology Promotion Society.
In the CSCL case, the CBI has filed charges against five bankers, one CSCL official, and one private person. In the CREST case, charges have been filed against five bankers, two CREST officials, four private individuals, and two companies.
A senior Indian Forest Service officer has also been arrested in the CREST investigation.
These cases show that financial irregularities are being investigated at different levels across Haryana and Chandigarh. The CBI is trying to uncover how public money was misused and who benefited from it.
Experts say such cases highlight the need for stronger financial controls in government offices. Public money is meant for welfare, education, agriculture, and development. If it is stolen or misused, it directly affects the people.
The arrest of a senior officer like Pankaj Agarwal sends a strong message that no one is above the law. The government and investigating agencies are expected to continue their crackdown on corruption.
For now, the focus remains on tracing the missing funds, identifying everyone involved, and recovering public money wherever possible.
The next few days are likely to be important as the CBI continues questioning Agarwal and studies financial records. More arrests or charges may follow as the investigation moves ahead.
This case has become one of the biggest financial fraud investigations in Haryana in recent years and could lead to major changes in how government funds are monitored in the future.
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