The Central Bureau of Investigation has arrested Parveen Kumar, former Senior Accounts Officer of the Haryana State Pollution Control Board, in connection with the alleged ₹504 crore IDFC First Bank fraud involving misappropriation of Haryana government funds.
According to investigators, Kumar allegedly opened a bank account without departmental approval and used it to facilitate diversion of public money. The case forms part of a wider probe into alleged fraudulent fixed deposits, debit notes and fund transfers involving multiple government departments.
Account Allegedly Opened Without Official Approval
CBI officials alleged that the unauthorised account was maintained at the Sector 32 branch of IDFC First Bank in Chandigarh.
Investigators claim the account was opened without proper departmental sanction or official record.
According to the agency, government funds were later siphoned from this account through cheques and fraudulent debit notes before being routed to shell entities allegedly controlled by the accused.
Mobile Number Linked to Another Accused
The CBI further alleged that while Parveen Kumar was the authorised signatory of the account, the mobile number linked to the account belonged to another accused who was not employed by the department.
Investigators believe this arrangement may have been used to conceal the movement of funds and avoid internal detection.
The agency said digital and documentary evidence established Kumar’s active role in the alleged fraud, leading to his arrest.
Second HSPCB Official Arrested in Case
Parveen Kumar is the second Haryana State Pollution Control Board official arrested in the matter.
Earlier, former HSPCB Member Secretary Pardeep Kumar was also taken into custody.
According to the CBI, the HSPCB-related investigation is part of a broader alleged financial fraud involving the IDFC First Bank Sector 32 branch, where nearly ₹504 crore belonging to eight Haryana government departments was allegedly siphoned through forged or non-existent fixed deposits and fraudulent debit notes.
25 Arrested So Far, Chargesheet Filed Against 17 Accused
The CBI has so far arrested 25 people in connection with the case.
The agency has also filed a chargesheet against 17 accused, including:
- Six officials of IDFC First Bank and AU Small Finance Bank
- Three Haryana government officials
- Two companies
- Six private individuals
Investigators are continuing to trace the complete money trail, identify additional beneficiaries and determine whether more public servants or private parties were involved.
Former Member Secretary Sent to Judicial Custody
In a related development, former HSPCB Member Secretary Pardeep Kumar was remanded to judicial custody by the Special CBI Court in Panchkula after completion of his two-day CBI custody.
The agency alleged that he was connected to the alleged misappropriation of ₹169.35 crore from the board’s account.
During court proceedings, the CBI argued that releasing him could allow him to influence witnesses, tamper with evidence or obstruct the investigation.
The agency also claimed he was not cooperative during questioning and had allegedly deleted important digital evidence.
Public Fund Fraud Highlights Need for Stronger Controls
The case highlights the risks that arise when government funds, banking operations and internal approvals are not monitored through strict verification systems.
Unauthorised accounts, forged fixed deposits, fraudulent debit notes and weak reconciliation practices can create serious exposure for public institutions.
Periodic internal reviews, real-time fund monitoring, maker-checker controls and independent auditing services in india can help government bodies and financial institutions detect irregular transactions, verify fund placement and reduce the risk of large-scale misappropriation.
Conclusion
The arrest of the former HSPCB Senior Accounts Officer marks another major development in the alleged ₹504 crore IDFC First Bank fraud case.
As the CBI continues tracing the flow of public money, the investigation may reveal further details about how government funds were allegedly diverted, routed and concealed through banking channels and shell entities.
Shunyatax Global Insight
Government fund frauds often expose failures across multiple layers—departmental approvals, bank account controls, fixed deposit verification, transaction monitoring and independent reconciliation. When even one layer becomes weak, public money can be diverted through unauthorised accounts and fabricated banking records.
Shunyatax Global believes public institutions and banks must adopt stronger treasury governance, automated reconciliation, real-time exception reporting and independent auditing services in india to prevent misuse of public funds. Continuous financial oversight can help detect unauthorised accounts, suspicious debit notes and irregular fund transfers before losses escalate into large-scale fraud.