On Tuesday, 30th June, the Central Bureau of Investigation (CBI) arrested senior IAS officer Pardeep Kumar in connection with the alleged misappropriation of ₹169 crore belonging to the Haryana State Pollution Control Board (HSPCB). The arrest took place on his last working day before retirement, marking a major development in what the agency has described as the biggest banking fraud involving a Haryana government department.
Pardeep Kumar, who was serving as the Member Secretary of the HSPCB at the time of the fraud, is accused of approving the transfer of government funds to an IDFC First Bank branch in Chandigarh on the pretext of creating fixed deposits. Kumar is a 2011-batch Haryana Civil Services (HCS) officer who was later promoted to the Indian Administrative Service (IAS).
Funds diverted through a fake bank account
According to the CBI, Kumar personally handled investment-related work and approved transfers that were much higher than the limits allowed under the rules. During the investigation, the agency found that instead of being invested in fixed deposits, the money was allegedly transferred into a bank account opened in the name of the HSPCB without any official approval or departmental records.
The probe further revealed that no fixed deposits were ever created. Instead, the money was withdrawn through fraudulent debit transactions, leading to the siphoning of ₹169 crore.
The CBI also said that Kumar had been avoiding the investigation despite receiving repeated notices. He had approached a Panchkula court seeking anticipatory bail, and his plea was scheduled to be heard on 2nd July. However, investigators tracked down his location and arrested him before the hearing.
Part of a larger ₹504 crore banking fraud
The HSPCB case is one part of a much larger banking fraud involving around ₹504 crore. According to the CBI, public funds belonging to eight Haryana government departments were diverted through fake or non-existent fixed deposits and fraudulent bank transactions before being routed through shell companies and other entities.
The agency took over the investigation from the Haryana State Vigilance and Anti-Corruption Bureau after the state government requested a CBI probe.
So far, the CBI has filed charge sheets against 17 accused in the Haryana case. These include six officials from IDFC First Bank and AU Small Finance Bank, three Haryana government officials, two companies and six private individuals. Before Kumar’s arrest, two other senior government officers had already been taken into custody in the same case.
The agency is also investigating two related cases in Chandigarh involving Chandigarh Smart City Limited (CSCL) and the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST). Charge sheets have already been filed in both cases, and a senior Indian Forest Service (IFoS) officer has also been arrested in the CREST investigation.
The CBI said it will continue tracing the money trail, identify everyone involved in the fraud and ensure that those responsible for misusing public funds are brought to justice.
