Rs 657 crore bank scam: IAS officer involved in Scam, Account opened in IDFC Bank without following Rules
An important update has been released related to Rs.657 crore scam in accounts of the Haryana Government maintained with IDFC First Bank in Haryana. CBI has said that IAS officer was involved in the scam. This scam has shocked the whole nation and shows how private banks and corrupt government officials loot public money.
About Scam: The IDFC First Bank Haryana government scam is a major financial fraud involving over ₹600 crore of public money. The crime took place at a single bank branch in Chandigarh and was discovered in February 2026. A group of dishonest bank employees, private fixers, and corrupt government officials worked together to steal the money. They tricked various Haryana government departments into moving their funds to this bank branch by using fake documents and promising fake, high interest rates of around 10%. Once the government departments deposited the money, the scammers secretly moved it out using fake checks and unauthorized withdrawal slips
The Central Bureau of Investigation (CBI) told the CBI Special Court in Haryana on Thursday that IAS officer Pankaj Agarwal functioned as a close associate of the mastermind of the Rs 657-crore bank scam, Ribhav Rishi. CBI said he received monetary and “unethical” benefits from him.
Agarwal’s role has come to the fore on two separate occasions in two different departments under his charge,” where he facilitated the opening of accounts in violation of guidelines of the state Finance Department and “thereby enabling diversion of government funds”.
CBI said Agarwal held the charge as Principal Secretary, School Education, from December 10, 2024, to June 16, 2025. Within seven days of his assuming charge, IDFC First Bank, Sector 32, Chandigarh, submitted a proposal dated December 17, 2024, for opening an account for the Haryana School Shiksha Pariyojna Parishad (HSSPP). The proposal was addressed to him, marked by him on December 19, 2024, and routed to the subordinate officer concerned. He approved the opening of an account on December 31, 2024, and sanctioned the transfer of Rs 100 crore thereto from a Kotak Mahindra Bank account.
The CBI alleged that the account in the IDFC First Bank was opened without following guidelines. It said, “no competitive process was followed, no quotations were invited from empanelled banks, and the proposal was processed solely on the ostensible ground that IDFC was offering a higher rate of interest even without comparing the rates.”
The transfer of funds also violated the investment ceiling. The limit was Rs 50 crore for the IDFC bank but Rs 100 crore was transferred on Agarwal’s approval.
The CBI said he “pressurised subordinate staff/officers to change the notesheet, process the file favourably, which then led to opening the account at IDFC First Bank.” There were 101 fraudulent debit transactions worth Rs 182.93 crore and 33 credit transactions of Rs 132.39 crore in the account, leading to net misappropriation of Rs 50.54 crore.
On June 20, 2025, Agarwal took charge as Principal Secretary, Agriculture & Farmers Welfare. Though a proposal dated May 21, 2025, for opening an HSAMB account had earlier not been processed, it was revived only after his intervention. It was processed on the same day, and an account was opened in the name of the Haryana Marketing Development Fund.
On January 14, 2026, Rs 10 crore was fraudulently withdrawn from HSAMB’s account using a cancelled cheque in favour of M/s SRR Planning Gurus Pvt Ltd and M/s Mannat Contractors.
The CBI said Agarwal was aware that Ribhav Rishi had been removed from his position at IDFC bank, but he still remained in regular contact with him. Agarwal knew about the fraud and received pecuniary and other advantages as quid pro quo for facilitating, and not acting against such diversions.
