CBI Arrests Haryana IAS Officer Ram Kumar Singh in ₹657 Crore Bank Scam Linked to IDFC First Bank Fraud Case

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A major corruption scandal involving alleged misuse of government funds has shaken Haryana’s administrative circles after the Central Bureau of Investigation (CBI) arrested suspended IAS officer Ram Kumar Singh in connection with a ₹657 crore banking fraud linked to multiple government departments and private banks.

The arrest marks a significant escalation in a widening probe that has already exposed alleged irregularities involving senior bureaucrats, bank officials, and intermediaries. Investigators claim the fraud spans several years and involved systematic diversion of public money through manipulated banking procedures.

According to officials familiar with the case, Singh was taken into custody after the CBI gathered what it described as “documentary and procedural evidence” indicating his active role in facilitating questionable transactions during his tenure as Commissioner of the Municipal Corporation, Panchkula.

The case centers around allegations that funds from multiple Haryana government departments and Chandigarh Administration bodies were siphoned off through accounts opened in violation of financial guidelines. Investigators say the scheme relied on a network of bank insiders and middlemen who allegedly helped route public money into shell entities.

At the heart of the allegations is the claim that fixed deposit accounts were never actually created, despite official cheques being issued for that purpose. Instead, the money was reportedly diverted through unauthorized transactions. The CBI has alleged that Singh handed over multiple signed cheques under the pretext of opening fixed deposits, which were later misused to transfer funds elsewhere.

Officials also pointed to alleged collusion between bank employees of IDFC First Bank and AU Small Finance Bank and certain government functionaries. The Enforcement Directorate (ED), which is conducting a parallel probe, has estimated the loss slightly lower at around ₹645 crore, though both agencies agree that the fraud is extensive and deeply layered.

Investigators further stated that the Municipal Corporation Panchkula alone saw nearly ₹79 crore allegedly diverted during Singh’s tenure. The CBI claims that these funds were routed through fraudulent debit entries and then transferred to shell companies controlled by those involved in the scheme.

The case has also triggered scrutiny of several other senior officials. The Haryana government had earlier suspended Singh along with another IAS officer after their names surfaced during the investigation. Authorities have also granted permission to probe multiple officers under provisions of the Prevention of Corruption Act, signaling that the investigation may expand further in the coming weeks.

According to CBI officials, the scam is not limited to a single department or bank branch but forms part of a broader pattern involving multiple government accounts, including those linked to Chandigarh Smart City Limited and the Chandigarh Renewable Energy and Science & Technology Promotion Society. Combined losses in these related cases are estimated at over ₹150 crore.

A senior investigator, speaking on condition of anonymity, said the complexity of the case lies in “the coordination between insiders in financial institutions and administrative authorities, which allowed repeated transactions to go unnoticed for a long period.”

Search operations conducted at Singh’s residences in Chandigarh and Karnal reportedly led to the recovery of several documents that investigators believe could strengthen the case further. However, Singh’s legal representatives have not yet issued a detailed public response to the allegations.

The arrest has sent shockwaves through administrative circles in Haryana, raising fresh concerns about oversight mechanisms in handling large government deposits. Experts say the case underscores the need for stricter auditing and real-time monitoring of public funds held in commercial banks.

While the investigation is still underway and charges have not been proven in court, the CBI has already chargesheeted multiple individuals, including bank officials and private entities allegedly linked to the financial trail. A chargesheet against IAS officers is expected as the probe progresses.

With multiple agencies now involved and more officials under the scanner, the case is likely to remain a focal point in discussions around bureaucratic accountability and financial governance in India’s state institutions.