Haryana: IAS officer Ram Kumar Singh arrested over Panchkula Municipal Corporation fund scam

Chandigarh: The Central Bureau of Investigation (CBI) has arrested IAS officer Ram Kumar Singh in connection with the Panchkula Municipal Corporation (MC) funds scam. He was the Commissioner of the Panchkula Municipal Corporation at the time. The arrest stems from the misappropriation of government funds from the MC Panchkula account held at the IDFC First Bank branch in Chandigarh's Sector 32. The CBI investigation revealed that the account was opened in violation of the existing rules of the Haryana Government's Finance Department. Information on the account opening form was filled in a manner designed to conceal fraudulent transactions that were to be executed later.

**Role of the IAS Officer**

In collusion with accused officials from IDFC First Bank, IAS officer Ram Kumar Singh—then Commissioner of MC Panchkula—handed over several signed cheques to bank officials through intermediaries. These cheques were issued under the pretext of opening Fixed Deposits (FDs). However, the funds were withdrawn using these cheques without any FDs actually being created. The siphoned-off money was transferred to shell companies (bogus entities) controlled and operated by the accused bank officials.

**Senior Accountant Arrested Earlier**

The fraud was perpetrated with the knowledge and active participation of the then MC Panchkula Commissioner and a senior accountant. The CBI had already arrested the senior accountant in this case. The investigation so far has revealed the active role of IAS officer RK Singh, leading to his arrest. Searches have also been conducted at his residences in Chandigarh and Karnal, and several crucial documents have been recovered.

**Understanding the Case**
It is worth noting that the CBI took over the investigation from Haryana's State Vigilance and Anti-Corruption Bureau at the request of the state government. The fraud at MC Panchkula involved the misappropriation of approximately ₹79.46 crore. This was part of a major fraud at the Sector-32 branch of IDFC First Bank, wherein ₹504 crore belonging to eight Haryana government departments was siphoned off via fake fixed deposits and debit notes and diverted to shell companies. So far, the CBI has filed charge sheets against 17 accused in this Haryana case, including six bank officials from IDFC First Bank and AU Small Finance Bank, three Haryana government employees, two companies, and six private individuals.

**Two More Cases Taken Up**
Meanwhile, the CBI has taken up two additional cases from the Union Territory of Chandigarh. One case pertains to Chandigarh Smart City Limited (CSCL) and the Chandigarh Municipal Corporation, while the other involves CREST Chandigarh. The CBI has filed charge sheets in both these matters. In the CSCL case, charge sheets have been filed against five bankers, one CSCL official, and one private individual. Additionally, charge sheets have been filed against five bankers, two CSCL officials, four private individuals, and two companies in connection with the CSCL matter. Furthermore, a senior IFoS officer has already been arrested in the CSCL case.