Haryana Bank Fraud: CBI Steps In To Probe Diversion Of Government Funds

The investigation into the alleged diversion of government funds parked in private banks in Haryana has now been transferred to the Central Bureau of Investigation (CBI).

The development comes after irregularities surfaced in accounts maintained by various state departments with private lenders, triggering political uproar and an Anti-Corruption Bureau (ACB) probe that led to multiple arrests (largely of bank staff). The fresh CBI angle now widens the scope of the inquiry to determine whether the fraud was limited to bank employees or if government officials were also involved.

What's The Case About

The controversy began after IDFC First Bank detected suspicious transactions linked to government department accounts in Haryana. Subsequent scrutiny revealed that funds worth hundreds of crores, belonging to different state entities, had allegedly been misappropriated.

Later, investigations expanded to include AU Small Finance Bank and Kotak Mahindra Bank, where similar irregularities were flagged.

Around Rs 590 crore linked to Haryana government departments is under scrutiny in IDFC First Bank and AU Small Finance Bank. About Rs 160 crore belonging to the Panchkula Municipal Corporation was flagged in Kotak Mahindra Bank.

How The Fraud Surfaced

The case first came to light after internal checks at IDFC First Bank flagged unusual transactions in accounts linked to Haryana government departments. What initially appeared to be an isolated discrepancy soon turned into a multi-bank investigation involving large sums of public money.

The matter triggered political debate in the state, with the opposition questioning how such transactions went unnoticed and demanding accountability from both banks and government officials.

Why Has The CBI Stepped In?

The Haryana government has cited the "large scale of financial irregularities" as the reason for recommending a CBI investigation. While the ACB had already made arrests, officials believe the case may involve a wider network and require a more detailed forensic and criminal investigation across institutions.

The CBI is now expected to examine:

• Whether bank officials acted alone
• Whether any state government officials facilitated or overlooked the transactions
• How internal checks failed across multiple banks handling public money

Money Recovered So Far

Even as the investigation continues, the state government has managed to recover substantial amounts. Notably, Rs 127.27 crore of the Panchkula Municipal Corporation's funds has been recovered from Kotak Mahindra Bank. And another Rs 25 crore belonging to Haryana Power Generation Corporation Ltd (HPGCL) has been recovered from AU Small Finance Bank.

Government's Stance

Haryana Chief Minister Nayab Singh Saini has directed both state officials and banks to ensure full recovery of public money and accountability in the matter.

Saini said safeguarding public funds is the government's primary responsibility and asserted that strict action would be taken against anyone found guilty. He also referred to acting in line with the governance principles laid down by Prime Minister Narendra Modi regarding transparency and protection of public resources.