Senior IAS Officer Arrested in Major Fund Misappropriation Case

The CBI has arrested senior IAS officer Pankaj Aggarwal for his alleged role in the misappropriation of government funds linked to Haryana's education and agriculture departments. The investigation, initiated after a referral from the Haryana government, uncovered fraudulent transactions that resulted in a loss of approximately Rs 60.54 crore. This case is part of a larger banking fraud involving significant sums from multiple government departments. Aggarwal's arrest is one of many in a series of investigations targeting corruption within the state's financial dealings. The CBI continues to pursue additional cases related to this fraud, highlighting ongoing efforts to combat corruption in government operations.

By Narendra Chaudhary Jun 23, 2026, 12:02 IST

Arrest of IAS Officer in Fund Misappropriation

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New Delhi, June 23: The Central Bureau of Investigation (CBI) has taken into custody senior IAS officer Pankaj Aggarwal due to his alleged involvement in the misappropriation of government funds linked to the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agricultural Marketing Board (HSAMB) at the IDFC First Bank's Sector 32 branch in Chandigarh.

Aggarwal, who held the position of Principal Secretary for both the School Education and Agriculture Departments during the time of the alleged misconduct, was apprehended on June 22.

He is expected to appear in court on Tuesday.

The CBI initiated its investigation after receiving a referral from the Haryana government. The agency claims that the accounts for HSSPP and HSAMB were established in breach of the Finance Department's guidelines.

Funds were transferred to these accounts beyond the allowed limits, with the accounts reportedly opened while Aggarwal was serving as Principal Secretary.

Further investigation uncovered that fraudulent activities were executed through these accounts, leading to an estimated loss of around Rs 60.54 crore to the state's finances. The CBI has indicated that it has collected significant evidence against the senior bureaucrat during its inquiry.

This case is part of a broader banking fraud investigation involving the Sector 32 branch of IDFC First Bank, where nearly Rs 504 crore from eight Haryana government departments was allegedly misappropriated and funneled through shell companies.

Previously, the CBI had taken over the investigation from the Haryana State Vigilance and Anti-Corruption Bureau at the state's request.

To date, the agency has filed charges against 17 individuals in connection with this case, including six officials from IDFC First Bank and AU Small Finance Bank, three Haryana government officials, two companies, and six private citizens.

In a related matter, R.K. Singh, another senior IAS officer arrested for alleged fund misappropriation linked to the Municipal Corporation of Panchkula, has been placed in judicial custody after his police remand ended.

The CBI has also assumed control of two additional cases from the Chandigarh Union Territory, one concerning Chandigarh Smart City Limited (CSCL) and the other involving the Chandigarh Municipal Corporation, along with a case related to the Centre for Research and Industrial Staff Performance (CREST).

Charges have been filed in each of these cases, with the agency charging seven individuals in the CSCL case and 13 in the CREST case, which includes bankers, government officials, private individuals, and companies. A senior officer from the Indian Forest Service has already been arrested in connection with the CREST investigation.