CBI Arrests Two Haryana Labour Welfare Board Officials in ₹50 Crore Fund Diversion Case Linked to ₹504 Crore IDFC First Bank Fraud
Chandigarh | July 8, 2026
The Central Bureau of Investigation (CBI) has arrested two officials of the Haryana Labour Welfare Board (HLWB) in connection with an alleged large-scale financial fraud involving the misappropriation of government funds maintained in an account at IDFC First Bank’s Sector-32 branch in Chandigarh.
The arrested officials have been identified as Jugal Kishore, an Accounts Officer, and Amit Kumar, an Accountant working on a contractual basis with the Haryana Labour Welfare Board. Both are accused of allegedly playing a role in the diversion of government money through fraudulent banking transactions.
According to the CBI, the investigation relates to the alleged misappropriation of approximately ₹50 crore from the Haryana Labour Welfare Board’s bank account. The funds were reportedly transferred through suspicious debit transactions and routed to multiple shell entities to conceal their movement and actual beneficiaries.
The case was taken over by the CBI following a reference from the Government of Haryana, which sought a detailed investigation into the alleged misuse of public funds.
₹50 Crore Allegedly Diverted Through Shell Companies
During the investigation, the CBI reportedly uncovered evidence suggesting that government funds amounting to approximately ₹50 crore were withdrawn from the Haryana Labour Welfare Board’s account through fraudulent debit transactions.
Investigators found that the money was allegedly transferred to three entities suspected of being used as channels for routing the misappropriated funds.
The entities identified during the investigation are:
- Capco Fintech Services
- SRR Planning Gurus Private Limited
- Swastik Desh Projects
According to the agency, these entities allegedly functioned as shell companies through which the funds were diverted.
The CBI examined the financial transactions and other available evidence to establish the suspected involvement of individuals connected with the handling and movement of the government money.
Investigators subsequently found incriminating evidence against Jugal Kishore and Amit Kumar, leading to their arrest.
Both Accused Remanded to CBI Custody
Following their arrest, both officials were produced before the competent court. The court subsequently remanded them to CBI custody to facilitate further investigation.
The agency is examining their alleged roles in the transactions, the circumstances surrounding the fraudulent withdrawals and the possible involvement of other individuals or entities.
The investigation is also focused on identifying the complete financial trail and determining how the government funds were transferred from the original account to the suspected shell companies.
Part of a Much Bigger ₹504 Crore Banking Fraud
The alleged ₹50 crore fraud involving the Haryana Labour Welfare Board is reportedly part of a much larger banking fraud uncovered at the Sector-32 branch of IDFC First Bank in Chandigarh.
According to the CBI, approximately ₹504 crore belonging to eight departments of the Haryana Government was allegedly siphoned off through forged or non-existent fixed deposits and fraudulent debit transactions.
The money was subsequently routed through various shell entities, raising serious concerns about the misuse of public funds and possible irregularities in banking operations.
The investigation is examining how government money deposited with the bank was allegedly diverted and whether forged banking records and fraudulent transactions were used to conceal the movement of funds.
The scale of the alleged fraud has made it one of the significant financial investigations involving government funds in Haryana.
CBI Takes Over Investigation from Haryana Vigilance Bureau
The investigation was initially handled by the State Vigilance and Anti-Corruption Bureau of Haryana. However, following a request from the state government, the CBI took over the probe to conduct a wider investigation into the alleged financial irregularities.
Since taking over the case, the central agency has expanded its investigation to examine the roles of bank officials, government employees, private individuals and companies suspected of being connected with the transactions.
So far, the CBI has filed chargesheets against 17 accused persons in the broader Haryana banking fraud case.
Those chargesheets reportedly include allegations against:
- Six officials associated with IDFC First Bank and AU Small Finance Bank.
- Three public servants of the Haryana Government.
- Two companies.
- Six private individuals.
The agency is continuing to investigate the alleged involvement of the accused and the financial network through which the government funds were reportedly diverted.
Focus on Tracing the Missing Public Money
The latest arrests mark another important development in the CBI’s efforts to uncover the alleged diversion of government funds and establish accountability in the banking fraud case.
Investigators are working to trace the complete movement of the misappropriated money, identify its beneficiaries and determine whether additional individuals or companies were involved in the alleged transactions.
The CBI has reiterated its commitment to bringing all those responsible to justice and ensuring that the entire trail of the diverted public money is identified. The agency is also working to trace the proceeds of the alleged crime and examine the financial arrangements used to transfer the funds.
The investigation continues as the CBI works to uncover the full extent of the alleged ₹504 crore banking fraud and establish the roles of those suspected of involvement in the diversion of Haryana Government funds.
News Source: CBI – Official Press Release
