CBI arrests another IAS officer in IDFC First Bank fraud case in Haryana

Chandigarh: The Central Bureau of Investigation (CBI) has arrested senior Indian Administrative Service (IAS) officer Pankaj Aggarwal in connection with the misappropriation of government funds deposited with the Chandigarh branch of IDFC First Bank. This was the second arrest of an IAS officer in the case.

Aggarwal, who is blamed for fund embezzlement of the Haryana School Shiksha Pariyojna Parishad and the Haryana State Agriculture Marketing Board, will be produced before the court on Tuesday.

Earlier, IAS officer R.K. Singh was arrested for misappropriating funds of the Municipal Corporation in Panchkula. Currently, he’s in judicial custody.

The case relating to IDFC First Bank was taken over by CBI on the reference of the state government.

Investigation revealed that accounts of the Haryana School Shiksha Pariyojna Parishad and the Haryana State Agriculture Marketing Board were opened in violation of guidelines of Finance Department.

Later, funds were transferred thereto in excess of limits. These accounts were opened during the tenure of Aggarwal as the Principal Secretary.

Investigation revealed that through fraudulent transactions, funds were misappropriated, causing loss of Rs 60.54 crore to the government.

During investigation, incriminating evidence against Aggarwal has been collected, said the CBI.

The federal agency had taken over the investigation from the State Vigilance and Anti-Corruption Bureau of Haryana.

The fraud at these two departments involved misappropriation of approximately Rs 60.54 crore, forming part of a larger scam at the Sector 32 IDFC First Bank branch in which funds to the tune of Rs 504 crore of eight government departments were siphoned off and routed to shell entities.

Till date 17 accused have been charge-sheeted by the CBI who includes six officials of IDFC First Bank/AU Small Finance Bank, three public servants of the Haryana government, two companies and six private individuals.

The CBI has also taken over two other cases from Chandigarh — one pertaining to Chandigarh Smart City of the Chandigarh Municipal Corporation and another pertaining to CREST Chandigarh.
IANS