The Central Bureau of Investigation (CBI) has taken over the probe into a massive Rs 590-crore alleged fraud involving Haryana government funds, formally registering an FIR on April 8 and launching a full-scale investigation.
The case centres on the diversion of public money from accounts in IDFC First Bank and AU Small Finance Bank, Panchkula, through forged documents, unauthorised transactions and an alleged criminal conspiracy.
Two IAS officers – R K Singh and Pradeep Kumar – have been suspended, while several others are under scrutiny as part of a widening crackdown.
HOW THE FRAUD UNFOLDED
According to the FIR accessed by India Today, the alleged scam took place over nearly five months, between September 26, 2025 and February 23, 2026. Funds linked to a government scheme under the Development and Panchayats Department, including the Mukhya Mantri Gramin Awas Yojana (MMGAY) 2.0 programme, were siphoned off without approvals.
Around Rs 50 crore was parked in two accounts opened in IDFC First Bank, while another Rs 25 crore was deposited in AU Small Finance Bank, before being diverted through a series of suspicious transactions.
Investigators have flagged the use of forged debit memos, fake authorisations and manipulated financial records. In one instance, a cheque mentioning Rs 2.5 crore in figures but “Rupees Twenty-Five Crores” in words was processed by the bank. Forged signatures of former Director General DK Behera, who had demitted office in October 2025, were also allegedly used, raising serious concerns over verification lapses.
BANKING GAPS, SHELL COMPANIES UNDER LENS
The FIR points to significant procedural lapses by the banks, including incomplete account opening documents and missing transaction records during initial scrutiny. Alerts for high-value transactions were reportedly linked to an unauthorised mobile number instead of an official account holder. AU Small Finance Bank has also been flagged for not fully cooperating with investigators.
The siphoned funds were allegedly routed through a network of shell entities – including Swastik Desh Project, SRR Planning Gurus Pvt Ltd, Cap Co Fintech Services and R S Traders – suspected to have been used to launder money through fictitious transactions and fabricated entries.
A three-member enquiry committee set up in February 2026 found no evidence of authorised utilisation, concluding the transactions were entirely fraudulent.
IAS OFFICERS SUSPENDED, MORE UNDER SCANNER
Administrative action has followed swiftly, with IAS officers RK Singh (2012 batch) and Pradeep Kumar (2011 batch) suspended. Both held key positions in the Haryana government, including roles in the Transport and Revenue departments. Vigilance teams have examined their joint bank accounts and assets worth crores as part of the probe.
Sources indicated that at least two to four more senior officers are under the scanner. The Haryana government also carried out a major bureaucratic reshuffle, transferring 15 IAS officers in what is being seen as part of a broader clean-up exercise.
CBI TAKES OVER, MULTIPLE CHARGES INVOKED
The case was initially registered by the State Vigilance and Anti-Corruption Bureau on February 23, 2026, based on a complaint by police officer Amit Kumar. Given the scale and complexity, including suspected interstate and possible international links, the Haryana government recommended a CBI probe, granting consent on March 25. The Centre subsequently notified the CBI to take over the case on April 8.
The agency has invoked stringent provisions under the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita, including charges of criminal misconduct, cheating, forgery, use of forged documents and criminal conspiracy. Around 15 arrests have reportedly been made so far.
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