Indian Bureaucracy News, Chandigarh, June 30, 2026 | In the latest development in the ₹504-crore public funds diversion case in Haryana, the Central Bureau of Investigation (CBI) has arrested senior IAS officer Pardeep Kumar, former Member Secretary of the Haryana State Pollution Control Board (HSPCB), on the day of his retirement. The agency has alleged that Kumar played a key role in the diversion of approximately ₹169 crore—described as the single largest loss among the departments under investigation. Pradeep Kumar is an Indian Administrative Service (IAS) officer of the 2011 batch from the Haryana cadre and was inducted from the State Civil Service (SCS), and holds a degree in M.Phil. and M.Sc.
According to the CBI, Kumar was directly involved in handling investment-related decisions during his tenure and is alleged to have authorised the transfer of funds far beyond prescribed financial limits to the Sector-32 branch of IDFC First Bank in Chandigarh. The funds were reportedly routed into an account opened in the name of HSPCB without mandatory approvals or supporting documentation, under the pretext of creating fixed deposits. However, investigators have stated that no such deposits were ever made, and the account was instead used for unauthorised debit transactions, leading to substantial diversion of public funds.
The agency further noted that the department was unable to produce official records relating to the opening of the account. Kumar had reportedly not joined the investigation despite repeated notices and was arrested after the CBI traced his location.
With this arrest, Kumar becomes the third IAS officer taken into custody in connection with the case. Earlier, the CBI had arrested former Principal Secretary Pankaj Aggarwal over the alleged diversion of ₹60.54 crore from the School Education and Agriculture Departments, and former Panchkula Municipal Commissioner Ram Kumar Singh in connection with the alleged diversion of ₹79.46 crore from municipal funds.
The case forms part of a larger alleged banking fraud involving nearly ₹504 crore belonging to eight Haryana government departments. The funds were allegedly siphoned off through forged or non-existent fixed deposits and fraudulent banking transactions before being routed through shell companies and fictitious entities.
So far, the CBI has filed charge sheets against 17 accused, including officials from IDFC First Bank and AU Small Finance Bank, government officials, private individuals, and companies. The investigation has also expanded to related financial irregularities in Chandigarh, including cases linked to Chandigarh Smart City Limited (CSCL) and the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST). A senior Indian Forest Service (IFoS) officer has also been arrested in connection with the CREST-linked case.
The matter was initially flagged during a routine internal audit that detected suspicious transactions in government accounts maintained at the Sector-32 branch of IDFC First Bank in Chandigarh. Following this, the Haryana government referred the case to the State Vigilance and Anti-Corruption Bureau (SVACB) for a preliminary inquiry. Based on initial findings, the state subsequently recommended a CBI probe.
The CBI has stated that the investigation is ongoing to identify all individuals involved, trace the full trail of diverted funds, and recover the proceeds of the alleged fraud. All allegations are subject to judicial scrutiny.
Meanwhile, Haryana Chief Minister Nayab Singh Saini has reiterated the government’s stated policy of zero tolerance towards corruption, emphasising that action will be taken in accordance with the law to ensure accountability and transparency in governance.