₹657 Crore Bank Scam: Haryana IAS Officer RK Singh Sent to 3-Day CBI Custody

A Panchkula court on Friday sent suspended Haryana IAS officer Ram Kumar Singh to three-day CBI custody in connection with the ₹657 crore bank scam involving government funds allegedly siphoned off through fraudulent banking transactions.

The 2012-batch IAS officer was arrested on Thursday for his alleged role in the diversion of ₹79.46 crore from the Municipal Corporation Panchkula's account maintained with IDFC First Bank in Chandigarh.

What Is the Case?

According to the CBI, the larger scam involved officials of IDFC First Bank and AU Small Finance Bank allegedly colluding with government officials to siphon funds from accounts belonging to eight Haryana government departments and two Chandigarh Administration departments.

The agency estimates the fraud at ₹657 crore, while the Enforcement Directorate (ED) has pegged the loss at ₹645 crore. Allegations Against RK Singh

The CBI claims the Municipal Corporation Panchkula account was opened in violation of Haryana government guidelines.

Investigators allege that RK Singh, while serving as Commissioner of the corporation, handed over multiple signed cheques to bank officials through intermediaries for creating fixed deposits.

However, no fixed deposits were allegedly created. Instead, the money was diverted to shell companies controlled by accused bank officials.

Searches conducted at Singh's residences in Chandigarh and Karnal reportedly led to the recovery of several incriminating documents.

Wider Probe Expands 

The CBI has already arrested former Senior Accountant Surinder Jain in the case and filed chargesheets against 15 individuals and three shell entities.

The Haryana government has also granted permission to investigate six other IAS officers, including Pardeep Kumar, Mohd Shayin, Pankaj Agarwal, DK Behera, Mani Ram Sharma, Vineet Garg and Saket Kumar.

The agency is simultaneously probing separate fraud cases involving Chandigarh Smart City Limited and CREST, where alleged misappropriation of around ₹153 crore has also come under scrutiny.