The Central Bureau of Investigation (CBI) has arrested an IAS official over the alleged diversion of ₹79.46 crore from the Panchkula Municipal Corporation.

The agency identified the accused as Sri Ram Kumar Singh, who was serving as the Commissioner at the time. The funds were diverted from the Corporation’s account at the Chandigarh branch of the IDFC First Bank.

“The investigation revealed that the account was opened in violation of the extant guidelines of the Haryana Government’s Finance Department. Particulars recorded on the account opening form were entered in a manner designed to conceal the fraudulent transactions that they were planning,” the CBI said on Thursday (June 18, 2026).

As part of the alleged conspiracy, which involved officials of IDFC First Bank, Mr. Singh allegedly handed the bankers multiple signed cheques through middlemen under the guise of opening fixed deposits. “The funds were debited using these cheques and no fixed deposits were ever created. The debited amounts were diverted to shell entities controlled and operated by the accused bank officials,” the agency added.

Accountant arrested

The agency had earlier arrested a senior accountant of the Municipal Corporation in the same case, after which Mr. Singh was booked and his homes in Chandigarh and Karnal were searched.

The CBI took over the investigation from the Haryana Vigilance and Anti-Corruption Bureau at the State Government’s request. The fraud at the Panchkula Municipal Corporation involved about ₹79.46 crore, forming part of a larger scam at the same branch of the bank in which ₹504 crore belonging to eight Haryana Government departments was siphoned off.

So far, 17 accused have been charge-sheeted by the CBI in the Haryana case. Among them are six officials of IDFC First Bank/AU Small Finance Bank, three public servants, two companies and six private individuals. The agency has also taken over two other cases from the Chandigarh Union Territory.