A court in Panchkula has sent suspended IAS officer Ram Kumar Singh to three days of CBI custody in connection with a ₹657 crore bank scam. The Central Bureau of Investigation (CBI) arrested him after conducting searches at his homes in Karnal and Panchkula.
What is the Scam?
According to the CBI, officials of IDFC First Bank and AU Small Finance Bank allegedly worked together with government officials, including IAS officers, to illegally withdraw money from the bank accounts of eight Haryana government departments and two Chandigarh Administration departments.
The CBI estimates the fraud caused a loss of ₹657 crore, while the Enforcement Directorate (ED) has put the loss at ₹645 crore.
Allegations Against Ram Kumar Singh
The CBI told the court that when the scam took place, Ram Kumar Singh was serving as Commissioner of the Municipal Corporation, Panchkula, and Municipal Council, Kalka.
Investigators allege that he approved the opening of a new bank account at IDFC First Bank in Chandigarh and allowed the transfer of more than ₹100 crore from the Municipal Corporation, Panchkula account to this new account. The agency claims this was done in violation of Finance Department guidelines.
The CBI further stated that Singh issued several cheques to the accused persons, knowing that the money would not be used for fixed deposits but would instead be misappropriated. During questioning, Singh reportedly admitted that the signatures on the disputed cheques were his own.
Ignored Warning Signs
According to investigators, officials in Singh’s office had pointed out discrepancies between fixed deposit records and related debit entries. Despite these warnings, Singh allegedly continued issuing cheques to the accused individuals instead of ordering an investigation.
The CBI said one of these cheques was later used for further misappropriation, while three other signed cheques are currently missing.
Alleged Bribery and Deleted Evidence
The CBI claims that digital evidence collected during the investigation indicates that Singh received illegal payments in return for his role in the conspiracy.
Investigators also alleged that Singh exchanged incriminating messages with co-accused persons through his mobile phone. However, when his phone was seized, many of the original communications were reportedly missing or deleted.
The agency said Singh failed to explain the missing messages or help recover them, suggesting a possible attempt to hide evidence.
Why Did the CBI Seek Custody?
The CBI argued that Singh is a senior IAS officer with significant influence over government officials and witnesses connected to the case. Investigators expressed concern that if he remained free, he could influence or intimidate witnesses.
The agency also told the court that Singh had not cooperated fully with the investigation and had withheld important information.
Former Government Official Also Arrested
The CBI has also arrested Prince Sharma, a former superintendent in the Development and Panchayats Department.
According to investigators, Sharma’s mobile number was linked to bank accounts belonging to the Municipal Corporation, Panchkula, and the Mukhyamantri Gramin Awas Yojana (MMGAY) 2.0 account, even though he was not responsible for handling these accounts.
The CBI alleges that this was done to prevent government departments from receiving transaction alerts and verification calls related to fraudulent transactions.
Allegations Against Prince Sharma
Investigators claim Sharma knew about the fraudulent transactions and participated in confirmation calls related to them. He is also accused of giving his SIM card to other members of the conspiracy on multiple occasions.
The CBI further alleged that Sharma deleted chats with co-accused persons, raising concerns about possible destruction of evidence.
Investigation Continues
The CBI told the court that custodial interrogation of both accused is necessary to trace the money trail and recover assets allegedly purchased using the siphoned funds. These assets may include properties and gold bought with the proceeds of the scam.
Investigators are also examining the possible involvement of other senior government officials and continue to track where the missing funds were transferred.
