The Haryana government has suspended two Indian Administrative Service (IAS) officers as part of an ongoing investigation into a major banking fraud worth ₹748 crore. The officers, Pradeep Kumar and Ram Kumar Singh, were placed under immediate suspension following orders issued by Chief Secretary Anurag Rastogi.
Although the official suspension orders did not clearly mention the reason, sources say the action is linked to a large-scale financial scam involving the misuse of government funds through private banks.
The fraud is said to involve major financial institutions such as IDFC First Bank, AU Small Finance Bank and Kotak Mahindra Bank.
According to officials, the scam is complex and involves multiple layers of financial wrongdoing. A major part of the fraud, estimated at around ₹590 to ₹597 crore, is linked to transactions involving IDFC First Bank and AU Small Finance Bank.
In this case, government funds that were meant to be kept safely as fixed deposits (FDs) were allegedly diverted into fake or shell companies. One such company named in the investigation is Swastik Desh Projects.
The diverted money was reportedly used for personal gains, including the purchase of luxury items and real estate. This raised serious concerns about misuse of public funds.
Another part of the scam, worth around ₹150 to ₹158 crore, involves Kotak Mahindra Bank. In this case, officials at the Panchkula Municipal Corporation are suspected of opening unauthorised bank accounts using forged documents, seals and signatures.
These accounts were then used to withdraw or transfer funds that were originally deposited as fixed deposits. The fraudulent activity went unnoticed for some time due to fake bank statements and manipulated records.
The irregularities came to light gradually between July 2025 and February 2026. Government departments noticed discrepancies when they tried to verify account balances or close fixed deposits, only to find that funds were missing.
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The suspended officers held important positions during the period under investigation. Pradeep Kumar had served as the member secretary of the Haryana State Pollution Control Board, while Ram Kumar Singh was the commissioner of the Panchkula Municipal Corporation.
Officials believe that the alleged fraud took place during their tenure in these roles. However, the exact extent of their involvement is still under investigation.
Before their suspension, Pradeep Kumar was working as director of state transport, and Ram Kumar Singh was serving as special secretary in the revenue department and additional CEO of the Panchkula Metropolitan Development Authority.
Under the rules of the All India Services (Discipline and Appeal) Rules, 1969, government officers can be suspended if disciplinary proceedings are pending or being considered. During suspension, they are entitled to a subsistence allowance and are required to remain available for inquiry.
The investigation gained momentum in March 2026 after key individuals linked to the scam were arrested. Following this, the Haryana government also removed the involved private banks from its approved list, a process known as de-empanelment.
Authorities are now examining financial records, bank transactions and official documents to understand how such a large amount of money was misused.
This case highlights serious concerns about financial management and accountability within government systems. It also raises questions about how checks and balances failed to detect the fraud earlier.
In conclusion, the suspension of the two IAS officers marks a significant step in the ongoing probe into the ₹748 crore scam. As investigations continue, more details are expected to emerge. The case underlines the importance of transparency, strict monitoring and accountability in handling public funds.
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