IAS Officer RK Singh Sent to CBI Custody in ₹657 Crore Haryana Bank Scam

• WhatsApp
• YouTube
• X
• Instagram

A Panchkula court on Friday sent Haryana IAS officer Ram Kumar Singh to three-day CBI custody, marking a significant development in the investigation of one of the biggest alleged financial frauds involving government funds in Haryana and Chandigarh. The senior bureaucrat was arrested a day earlier for his alleged role in the siphoning of more than ₹79 crore from the bank account of the Municipal Corporation (MC), Panchkula, maintained at the Sector 32 branch of IDFC First Bank in Chandigarh.

The arrest has brought renewed focus on a sprawling bank fraud that investigators say caused losses running into hundreds of crores and exposed serious weaknesses in the management of public funds. According to the Central Bureau of Investigation (CBI), the Municipal Corporation Panchkula case is only one component of a much larger network of fraudulent transactions that allegedly diverted government money through fake fixed deposits, forged financial instruments, and shell companies.

The CBI alleges that while serving as Commissioner of Municipal Corporation Panchkula, Ram Kumar Singh played a crucial role in facilitating transactions that ultimately led to the disappearance of public funds. Investigators claim that the bank account itself was opened in violation of Haryana Finance Department guidelines and that information entered in the account-opening documents was deliberately structured to conceal future fraudulent activities.

According to the agency, Singh allegedly worked in coordination with certain officials of IDFC First Bank. Investigators claim that multiple signed cheques were handed over to bank officials through intermediaries under the pretext of creating fixed deposits for the corporation. However, the promised fixed deposits were never opened. Instead, funds were allegedly withdrawn using those cheques and routed into shell entities controlled by individuals connected to the fraud.

“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 CBI stated while outlining its case before the court.

The agency further alleges that the misappropriation of money occurred with the knowledge and active participation of senior officials responsible for overseeing the corporation’s finances. Earlier in the investigation, the CBI had already arrested Senior Accountant Surinder Jain, who was allegedly involved in facilitating the illegal transactions.

Searches conducted at Singh’s residences in Chandigarh and Karnal reportedly led to the recovery of several documents that investigators consider important to the case. These materials are expected to form part of the agency’s effort to establish the chain of decision-making and identify the extent of involvement of public officials and banking personnel.

The Municipal Corporation Panchkula case revolves around the alleged siphoning of ₹79.46 crore. However, investigators say the fraud extended far beyond a single department. According to the CBI, approximately ₹504 crore belonging to eight Haryana government departments was diverted through forged or non-existent fixed deposits and debit notes before being transferred to shell companies.

The broader investigation concerns what has come to be known as the ₹657 crore bank scam, involving officials from IDFC First Bank and AU Small Finance Bank. Investigators believe certain bank officials colluded with government employees to gain access to public funds and redirect them through a sophisticated network of transactions. While the CBI has estimated the total loss at ₹657 crore, the Enforcement Directorate (ED), which is conducting a parallel money laundering investigation, has placed the figure at around ₹645 crore.

Ram Kumar Singh, a 2012-batch IAS officer promoted from the Haryana Civil Services cadre, came under scrutiny earlier this year as investigators widened their probe. Following the emergence of allegations against him, the Haryana government suspended him on April 8 along with another IAS officer, Pardeep Kumar, who is also under investigation in connection with the scam.

Singh served as Commissioner of Municipal Corporation Panchkula during multiple tenures, including the period that investigators are examining. The timing of his postings and the movement of funds from government accounts have become central aspects of the CBI’s inquiry.

The investigation has also expanded to include several other senior bureaucrats. Earlier, the Haryana government granted permission under Section 17A of the Prevention of Corruption Act to investigate the role of six additional IAS officers — Mohd Shayin, Pankaj Agarwal, D.K. Behera, Mani Ram Sharma, Vineet Garg and Saket Kumar. In recent weeks, investigators carried out searches at the premises of some of these officers as part of evidence-gathering operations.

So far, the CBI has filed chargesheets against multiple accused individuals and entities linked to the scam. The list includes bank officials, public servants, private individuals and companies allegedly used to move and conceal diverted funds. However, chargesheets specifically concerning the role of IAS officers are still under preparation.

The scandal is not confined to Haryana government departments. Investigators are simultaneously probing two major cases involving Chandigarh Administration-linked entities. One case relates to Chandigarh Smart City Limited (CSCL), while the other concerns the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST).

According to investigators, these two cases account for another ₹153 crore in alleged financial irregularities. In the CSCL case, the CBI has already filed chargesheets against bankers and officials accused of facilitating fraudulent transactions. In the CREST matter, charges have been filed against bank officials, government functionaries, private individuals and firms. The case had earlier led to the arrest of senior Indian Forest Service officer Navneet Srivastava.

The arrest of Ram Kumar Singh represents one of the most significant actions taken so far against a serving senior bureaucrat in the scandal. As investigators continue tracing money trails and examining the role of officials across departments and financial institutions, the case is emerging as a major test of accountability in the handling of public funds.

With the CBI now granted custody of the IAS officer, investigators are expected to focus on uncovering how government money was allegedly diverted, identifying the full network of beneficiaries, and determining whether additional officials or institutions were involved. The outcome of the investigation could have far-reaching implications for financial oversight, governance practices, and anti-corruption measures across Haryana and Chandigarh.