The Central Bureau of Investigation (CBI) arrested senior Indian Administrative Service (IAS) officer Pankaj Aggarwal on 22 June in connection with the alleged misappropriation of government funds from accounts held at the Sector 32 branch of IDFC First Bank in Chandigarh, causing a net loss of approximately ₹60.54 crore to the state exchequer. Aggarwal is scheduled to be produced before a court on Tuesday.

What the Allegations Cover

According to the CBI, accounts of the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agricultural Marketing Board (HSAMB) were opened at the IDFC First Bank branch in violation of guidelines issued by the Finance Department of the Haryana government. Funds were subsequently transferred to these accounts in excess of prescribed limits, and fraudulent transactions were allegedly carried out through them.

The accounts were reportedly opened during Aggarwal's tenure as Principal Secretary of both the School Education Department and the Agriculture Department. The CBI has stated it gathered incriminating evidence against the officer during the course of the investigation.

The Larger Banking Fraud

This arrest forms part of a significantly larger banking fraud centred on the Sector 32 branch of IDFC First Bank, where funds amounting to nearly ₹504 crore belonging to eight Haryana government departments were allegedly siphoned off and routed through shell entities. The CBI took over the investigation from the State Vigilance and Anti-Corruption Bureau, Haryana, at the request of the state government.

So far, the agency has filed chargesheets against 17 accused in the Haryana case, including six officials of IDFC First Bank and AU Small Finance Bank, three Haryana government officials, two companies, and six private individuals.

Related Arrests and Parallel Cases

In a related development, senior IAS officer R.K. Singh, arrested in connection with alleged misappropriation of funds linked to the Municipal Corporation of Panchkula, has been remanded to judicial custody following the completion of his police remand.

The CBI has also taken over two separate cases from Chandigarh Union Territory — one involving the Chandigarh Smart City Limited (CSCL) and the Chandigarh Municipal Corporation, and another related to the Centre for Research and Industrial Staff Performance (CREST). Chargesheets have been filed in both: seven accused in the CSCL case and 13 accused in the CREST case, including bankers, government officials, private individuals, and companies. A senior Indian Forest Service (IFoS) officer has already been arrested in the CREST matter.

What Happens Next

With Aggarwal's court production imminent and chargesheets already filed across multiple linked cases, the CBI's probe into the broader Chandigarh banking fraud network appears to be entering a decisive phase. Further arrests cannot be ruled out as the agency continues to map the alleged network of shell entities and complicit officials.