CBI arrests IAS officer in multi-crore Govt fund scam

The Central Bureau of Investigation (CBI) has arrested Pankaj Aggarwal, IAS on Monday who was the then Principal Secretary in Department of School Education and Agriculture, in connection with the alleged misappropriation of government funds from the account of Haryana School Shiksha Pariyojna Parishad (HSSPP) and Haryana State Agriculture Marketing Board (HSAMB) maintained with the Sector 32, Chandigarh branch of IDFC First Bank. The 2000-batch IAS officer from the Haryana cadre served as principal secretary in the education ministry from December 10, 2024, to June 16, 2025. He was posted as principal secretary in agriculture from June 20, 2025, to March 24 this year, officials said.
According to CBI readout,Investigators found that bank accounts of the two departments were opened in violation of the Haryana Government Finance Department's guidelines and that funds exceeding prescribed limits were subsequently transferred into these accounts. The accounts were opened during Aggarwal's tenure as Principal Secretary. The agency alleged that fraudulent transactions carried out through these accounts resulted in the misappropriation of government funds, causing a net loss of approximately ₹60.54 crore to the state exchequer. The agency stated that substantial incriminating evidence has been collected against the former bureaucrat during the course of the investigation.
The case forms part of a larger alleged banking fraud involving the Sector-32 branch of IDFC First Bank, where funds amounting to approximately ₹504 crore belonging to eight Haryana Government departments were allegedly siphoned off and routed through shell entities, the statement said.So far, the CBI has filed chargesheets against 17 accused persons, including six officials of IDFC First Bank and AU Small Finance Bank, three Haryana Government officials, two companies, and six private individuals.
The case pertains to the alleged diversion and misappropriation of funds belonging to the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agricultural Marketing Board (HSAMB). The investigation was taken over by the CBI following a reference from the Haryana Government.
Earlier, senior IAS officer R.K. Singh was also arrested in connection with the case relating to the alleged misappropriation of funds from the Municipal Corporation, Panchkula. Following the completion of his police remand, Singh was remanded to judicial custody. The CBI has also taken over investigations into two other related cases from the Union Territory of Chandigarh—one involving Chandigarh Smart City Limited (CSCL)/Chandigarh Municipal Corporation and another concerning CREST Chandigarh.
Chargesheets have already been filed in both cases. In the CSCL case, the agency has chargesheeted five bankers, one CSCL official, and one private individual. In the CREST case, five bankers, two CREST officials, four private individuals, and two companies have been named as accused. A senior Indian Forest Service (IFoS) officer has also been arrested in connection with the CREST investigation.

(Freelance Journalist)