Haryana: CBI court denies bail to ex-bank official in ₹550 crore fraud case

Special judge (CBI), Haryana, Vijayant Sehgal, dismissed Sharma’s bail application, observing that the allegations involved a large-scale economic offence and that further investigation in the case was pending

The special CBI court in Panchkula on Tuesday dismissed the bail application of Arun Sharma, 39, a former area head of IDFC First Bank and former regional manager (current accounts) of AU Small Finance Bank, in connection with the alleged ₹550-crore fraud involving government funds in Haryana.

The court clarified that its observations were limited to consideration of bail and would not prejudice either side during trial. (HT FILE)

Special judge (CBI), Haryana, Vijayant Sehgal, dismissed Sharma’s bail application, observing that the allegations involved a large-scale economic offence and that further investigation in the case was pending. The court said no ground for granting bail was made out at this stage.

The case pertains to an FIR registered by the CBI on April 8, 2026, under provisions of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita. The prosecution case originated from an inquiry into discrepancies in accounts maintained with IDFC First Bank and AU Small Finance Bank. The investigation allegedly revealed fraudulent transactions through which funds belonging to various Haryana government departments were siphoned off, with the alleged fraud amounting to approximately ₹550 crore.

According to the CBI, Sharma was posted as regional manager (current accounts), Chandigarh/Punjab, at AU Small Finance Bank from March 4, 2025, to March 10, 2026. Before that, he had served as area head at IDFC First Bank, Sector 8, Chandigarh, where he was senior to co-accused Ribhav Rishi, then a branch manager at the bank’s Sector 32 branch.

The prosecution alleged that Sharma facilitated Rishi’s induction into AU Small Finance Bank, following which two Haryana government accounts were opened there. Fraudulent debit transactions in the accounts of the HPGCL Employees Pension Fund Trust and director panchayat allegedly caused a loss of ₹24.52 crore to government departments.

The CBI further alleged that Sharma sent forged account statements of account of director panchayat MMGAY 2.0 to government officials to conceal fraudulent transactions and received around ₹2 crore through different entities as quid pro quo. It also alleged that approximately ₹4.6 crore was delivered to him in cash. The investigation additionally alleged misuse of blank cheques linked to Vistamed Solutions for layering ₹3.46 crore through a jeweller.

The court noted that Sharma’s alleged receipt of funds, his email to government departments certifying incorrect balances and the statement regarding cash payments prima facie indicated his alleged complicity. It also rejected his claim of parity with co-accused Amit Dewan, saying the roles attributed to the two accused were different.

The court clarified that its observations were limited to consideration of bail and would not prejudice either side during trial.