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₹645-crore IDFC First Bank fraud case: CBI court denies bail to suspended Haryana IAS officer
Agarwal is accused of facilitating the opening of unauthorised bank accounts that allegedly enabled the diversion of around ₹60.54 crore belonging to the Haryana School Shiksha Pariyojna Parishad and the Haryana State Agricultural Marketing Board
A special CBI court on Thursday rejected the bail application of suspended 2000-batch IAS officer Pankaj Agarwal, who was arrested on June 22 in the ₹645-crore IDFC First Bank fraud case. The court observed that the gravity of the allegations, his alleged role, and the ongoing investigation did not warrant his release at this stage.
Agarwal is accused of facilitating the opening of unauthorised bank accounts that allegedly enabled the diversion of around ₹60.54 crore belonging to the Haryana School Shiksha Pariyojna Parishad (HSSPP) and the Haryana State Agricultural Marketing Board (HSAMB).
The alleged fraud forms part of a much larger scam, with the CBI investigating the siphoning off of nearly ₹645 crore from various Haryana government departments through fraudulent banking transactions.
Opposing the bail plea, the CBI submitted that its investigation had revealed that funds of about ₹50.54 crore from HSSPP and ₹10 crore from HSAMB, maintained with IDFC First Bank, were fraudulently transferred to shell entities and subsequently withdrawn as part of a criminal conspiracy involving bank officials and other accused persons.
According to the agency, Agarwal was principal secretary, school education between December 10, 2024 and June 16, 2025. During this period, he allegedly approved the opening of a new HSSPP bank account at IDFC First Bank’s Sector-32 branch in Chandigarh and facilitated the transfer of ₹100 crore from an existing Kotak Mahindra Bank account, allegedly in violation of government instructions.
The CBI alleged that 101 fraudulent debit transactions worth ₹182.93 crore and 33 fraudulent credit transactions worth ₹132.39 crore took place in the account, resulting in a net misappropriation of ₹50.54 crore, with most of the fraudulent debits occurring during Agarwal’s tenure.
The agency alleged that after taking charge as principal secretary, agriculture and farmers welfare on June 20, 2025, and as chairman of HSAMB, Agarwal again intervened in favour of the same bank for opening another account in the name of the Haryana Marketing Development Fund.
The account was opened on July 10, 2025, following which ₹10 crore was allegedly siphoned off using a cancelled cheque in favour of M/s SRR Planning Gurus Pvt. Ltd. and M/s Mannat Contractors, the agency alleged.
The CBI told the court that Agarwal was aware of the criminal conspiracy to divert government funds through fraudulent debit transactions and remained in touch with accused bank officials, including Ribhav Rishi. It alleged that he received pecuniary and other advantages as quid pro quo for facilitating the diversion of funds and deliberately refraining from taking action against the illegal transactions.
The agency alleged that immediately after assuming charge in HSSPP, Agarwal processed the proposal to open an account with IDFC First Bank and exerted influence on his subordinates to ensure its approval. It submitted that no competitive process was followed, quotations were not invited from other empanelled banks and government instructions governing the opening of bank accounts were violated.
According to the CBI, the original note sheet was allegedly altered at Agarwal’s instance to facilitate the opening of the account and transfer of ₹100 crore, and a similar course was followed in opening the HSAMB account.
Agarwal’s counsel argued that he had been falsely implicated, highlighting his 26-year unblemished service record and contending that his arrest on June 22, 2026, was unjustified.
Rejecting the plea, the court held that considering the nature of the allegations, the gravity of the offence, the role attributed to the accused and the fact that the investigation remains pending, no ground for grant of bail was made out at this stage.
The CBI had registered an FIR on April 8 under various provisions of the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act after the Haryana government transferred the probe from the state vigilance and anti-corruption bureau, which had initially registered the case on March 22.
