Haryana Govt 'Fund Scam' : CBI Arrests Two Former Bank Officials

The CBI has arrested two former bank officials in its ongoing investigation into the misappropriation of funds belonging to Haryana government departments."The CBI has arrested Shamim Dar, then Area Head of IDFC First Bank, and Charanjeet Singh Randhawa, then Branch Manager of AU Small Finance Bank, Mohali Branch, in connection with the misappropriation of funds of Haryana government departments through irregular investment of surplus funds in fixed deposits and fraudulent transactions routed through bank accounts opened for this purpose," the CBI said in a statement on Tuesday.According to the CBI, Dar and Randhawa, in their capacities as bank officials, allegedly played key roles in opening bank accounts and facilitating fraudulent transactions through which

public funds were allegedly diverted. Both have been arrested and will be produced before a special court, where the agency will seek their custody.The Haryana government has transferred to the CBI the investigation into the alleged embezzlement of Rs 504 crore from eight state government departments. These cases were earlier being investigated by Haryana's State Vigilance and Anti-Corruption Bureau. In February the IDFC First Bank said it has returned Rs 583 crores to Haryana government."The fraud was perpetrated at the Sector 32 IDFC First Bank branch in Chandigarh, where funds to the tune of Rs 504 crore belonging to eight Haryana government departments were siphoned off through forged/non-existent fixed deposits and debit notes, and routed to shell entities," the CBI said.On June 23, the CBI arrested suspended IAS officer Pankaj Aggarwal in connection with the misappropriation of government funds from the accounts of the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agriculture Marketing Board (HSAMB), maintained with the Sector 32 branch of IDFC First Bank in Chandigarh."Investigation revealed that the accounts of these departments were opened in violation of the extant guidelines of the Finance Department of the Government of Haryana, and later funds were transferred in excess of the prescribed limits. These accounts were opened during the tenure of Pankaj Aggarwal, the then Principal Secretary. Investigation further revealed that fraudulent transactions in these accounts led to the misappropriation of funds, causing a net loss of Rs 60.54 crore to the government. During the investigation, incriminating evidence against Pankaj Aggarwal was collected," the CBI said after his arrest.Earlier, the CBI had arrested former Municipal Commissioner of Panchkula, Ram Kumar Singh. The investigation revealed that the account was opened in violation of the Finance Department's guidelines."The particulars recorded in the account opening form were entered in a manner designed to conceal the fraudulent transactions intended to be carried out subsequently. Pursuant to an understanding with the accused officials of IDFC First Bank, Singh, a suspended IAS officer and then Municipal Commissioner, Panchkula, handed over multiple signed cheques to the bank officials through middlemen under the guise of opening fixed deposits," the CBI said."The funds were debited using these cheques, and no fixed deposits were ever created. The debited amounts were diverted to shell entities controlled and operated by the accused bank officials," the agency added.The fraud involving the Municipal Corporation, Panchkula, allegedly resulted in the misappropriation of approximately Rs 79.46 crore and formed part of the larger Rs 504-crore scam at the Sector 32 branch of IDFC First Bank, in which funds belonging to 8Haryana government departments were siphoned off through forged/non-existent fixed deposits and debit notes before being routed to shell entities.So far, the CBI has chargesheeted 17 accused in the Haryana case, including six bank officials of IDFC First Bank and AU Small Finance Bank, three Haryana government public servants, two companies, and six private individuals.The CBI has also taken over two other cases from the Chandigarh Union Territory—one involving Chandigarh Smart City (CSCL)/Chandigarh Municipal Corporation and another involving CREST Chandigarh. A chargesheet has also been filed by the CBI in each of these cases.