CBI arrests two Haryana Labour Welfare Board officials in ₹50 crore fund diversion case
Synopsis
Two Haryana Labour Welfare Board officials have been arrested by the CBI for allegedly siphoning ₹50 crore into shell companies — but that is only part of the story. The fraud is linked to a larger ₹504 crore scam at a single IDFC First Bank branch in Chandigarh that reportedly bled eight state government departments dry through forged fixed deposits and ghost debit transactions.
Key Takeaways
CBI arrested Accounts Officer Jugal Kishor and contractual Accountant Amit Kumar of the Haryana Labour Welfare Board on 8 July .
The duo allegedly diverted ₹50 crore in government funds through fraudulent debit transactions to shell entities including Capco Fintech Services , SRR Planning Gurus Private Limited , and Swastik Desh Projects .
The HLWB fraud is part of a larger scam in which approximately ₹504 crore belonging to eight Haryana government departments was allegedly siphoned from the Sector-32 branch of IDFC First Bank, Chandigarh .
The CBI has filed charge sheets against 17 accused so far, including six bank officials , three government employees , two companies , and six private individuals .
The case was referred to the CBI by the Haryana government after it was initially investigated by the State Vigilance and Anti-Corruption Bureau .
The Central Bureau of Investigation (CBI) on Wednesday, 8 July arrested two officials of the Haryana Labour Welfare Board (HLWB) in connection with the alleged misappropriation of ₹50 crore in government funds from the Board's account at the Sector-32 branch of IDFC First Bank in Chandigarh. The arrests were made after the CBI's investigation uncovered incriminating evidence against both accused, who were subsequently produced before a competent court and remanded to CBI custody.
Who Was Arrested
The two officials taken into custody have been identified as Accounts Officer Jugal Kishor and contractual Accountant Amit Kumar. The CBI took over the case on a reference from the Haryana government, having earlier assumed charge of the probe from the State Vigilance and Anti-Corruption Bureau, Haryana, at the state's request.
How the Fraud Was Carried Out
According to the agency, investigators established that ₹50 crore in government funds were siphoned from the HLWB account through fraudulent debit transactions. The money was allegedly diverted to shell entities, including Capco Fintech Services, SRR Planning Gurus Private Limited, and Swastik Desh Projects. The use of forged or non-existent fixed deposits appears to have been a key mechanism in concealing the transactions.
Part of a Larger Banking Scam
The HLWB case is not an isolated incident. The CBI has linked it to a broader banking fraud centred on the same Sector-32 branch of IDFC First Bank, in which government funds worth approximately ₹504 crore belonging to eight Haryana government departments were allegedly siphoned off through similar methods. The funds were subsequently routed through a network of shell entities. This is the latest in a series of arrests in what investigators describe as a systemic fraud spanning multiple departments and financial institutions.
Charge Sheets and Accused So Far
The CBI has so far filed charge sheets against 17 accused in the broader case. Those charged include six officials of IDFC First Bank and AU Small Finance Bank, three Haryana government employees, two companies, and six private individuals. The agency stated it remains committed to tracing the complete trail of misappropriated public funds and recovering the proceeds of crime.
What Comes Next
With the two HLWB officials now in CBI custody, investigators are expected to interrogate them to map the full network of beneficiaries and identify any additional shell entities involved. The agency has indicated that more arrests cannot be ruled out as the probe into the ₹504 crore scam widens across all eight affected departments.
Point of View
Not just individual misconduct. The use of forged fixed deposits as a cover mechanism suggests insider knowledge that goes beyond an accounts officer and a contractual accountant. With 17 charge-sheeted accused and more arrests signalled, the real question is how high up the chain the CBI's trail leads — and whether the state government's own referral reflects urgency or an attempt to control the narrative.
NationPress
8 Jul 2026
Frequently Asked Questions
Why did the CBI arrest the two Haryana Labour Welfare Board officials?
The CBI arrested Accounts Officer Jugal Kishor and contractual Accountant Amit Kumar for their alleged role in diverting ₹50 crore in government funds from the HLWB's account at IDFC First Bank's Sector-32 branch in Chandigarh through fraudulent debit transactions routed to shell entities.
What is the larger scam linked to this HLWB fraud?
The HLWB case is part of a broader banking fraud in which approximately ₹504 crore belonging to eight Haryana government departments was allegedly siphoned from the same IDFC First Bank branch in Chandigarh through forged or non-existent fixed deposits and fraudulent transactions.
Which shell entities were involved in the fund diversion?
According to the CBI, the diverted funds were channelled into shell entities including Capco Fintech Services, SRR Planning Gurus Private Limited, and Swastik Desh Projects.
How many people have been charge-sheeted in this case so far?
The CBI has filed charge sheets against 17 accused, comprising six officials of IDFC First Bank and AU Small Finance Bank, three Haryana government employees, two companies, and six private individuals.
How did the CBI get involved in this case?
The CBI took over the investigation on a reference from the Haryana government, having assumed charge from the State Vigilance and Anti-Corruption Bureau of Haryana at the state's request.
