The Vigilance Bureau (VB) has nominated Arun Sharma, former additional deputy commissioner (ADC development), Ferozepur, and currently deputy director in the rural development and panchayats department, Punjab, as an accused in an alleged ₹1.8-crore embezzlement involving panchayat samiti, Ferozepur.
Sharma was nominated as an accused, after the rural development and panchayats department granted the requisite sanction for his investigation under Section 17-A of the Prevention of Corruption Act, 1988, according to a special report and VB record available with HT.
The case relates to the alleged unauthorised withdrawal and transfer of panchayat samiti funds through the misuse of digital signature certificates (DSCs). A two-member departmental inquiry had earlier found that around ₹1.80 crore was transferred to the bank account of a private firm, through unauthorised digital signatures.
The inquiry committee comprised divisional deputy director (panchayat), Jalandhar, Amardeep Singh Gujral, and district development and panchayat officer (DDPO), Bathinda, Gurpartap Singh. Its report, submitted to the additional secretary, rural development and panchayats department, pointed towards the alleged involvement of employees of the block development and panchayat office (BDPO), Ferozepur, the ADC office and private vendors.
According to the inquiry, the transactions amounting to around ₹1.8 crore were carried out between May 26 and June 23, 2024, allegedly by misusing the DSC of Kirandeep Kaur, a former BDPO, even after her transfer on January 1, 2024.
{{/usCountry}}According to the inquiry, the transactions amounting to around ₹1.8 crore were carried out between May 26 and June 23, 2024, allegedly by misusing the DSC of Kirandeep Kaur, a former BDPO, even after her transfer on January 1, 2024.
{{/usCountry}}The funds were allegedly shown as payments to a contractor associated with a tile factory in Mamdot, Ferozepur, although the inquiry found that no corresponding material had been supplied, according to officials familiar with the findings.
The alleged irregularity came to light after the then additional deputy commissioner (development), Ferozepur, Lakhwinder Singh Randhawa, sought clarification from the serving BDPO regarding the continued use of the transferred official’s DSC. Officials said the inquiry found that despite being apprised of the irregularities, timely action was not taken against those allegedly responsible.
The matter subsequently led the department to direct the registration of a criminal case and a comprehensive investigation. In a communiqué issued by Paramjit Singh, additional secretary, rural development and panchayats department, the SSP, Ferozepur, was asked to register a case, prioritise the investigation, involve cybercrime experts and take stringent legal action against those found responsible, including government officials as well as private persons.
The case was initially registered on December 13, 2024, at Ferozepur City police station, against e-Panchayat data-entry operator Manjinder Singh and others in connection with the alleged fraudulent withdrawal of Panchayat Samiti funds under Sections 318(4), 316(5), 61(2), 238 of the BNS Act, Section 65 of the IT Act, along with Sections 336(2), 336(3), 333 and 340(2) of the BNS Act and Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988, as amended by the Prevention of Corruption (Amendment) Act, 2018.
During the subsequent investigation, the VB sought sanction from the department to investigate Sharma, who was serving as ADC (Development), Ferozepur, during the relevant period. The administrative department issued the sanction on May 6, 2026, which was received by the Vigilance Bureau’s Ferozepur office on June 10. Sharma was thereafter formally nominated as an accused on Friday.
Sharma is currently posted as deputy director at the headquarters of the rural development and panchayats department, the record states.
“It’s surprising that I have now been nominated as an accused in a case in which I was, in fact, a whistleblower and had conducted the initial inquiry, seeking stern action against those involved in the embezzlement,” Arun Sharma said, alleging that he was being made a scapegoat due to office politics.