CBI Files Third Chargesheet Against 19 Accused, Including Six IAS Officers and Four Bank Officials, in ₹504 Crore Haryana Government Funds Misappropriation Case
New Delhi, 2 September 2026: The Central Bureau of Investigation (CBI) has taken another major step in its investigation into the alleged misappropriation of government funds belonging to various departments and organisations of the Haryana Government. On 2 September 2026, the agency filed its third chargesheet against 19 accused persons, including six IAS officers, four bank officials and nine other officials of the Haryana Government, in connection with the alleged ₹504 crore financial fraud involving IDFC First Bank and AU Small Finance Bank.
The chargesheet was filed before the Special Judge for CBI Cases in Panchkula, Haryana. According to the investigating agency, the case concerns the alleged fraudulent diversion and misappropriation of government funds deposited in the two banks. The investigation has focused on the suspected involvement of public servants and bank officials who allegedly worked together to facilitate the transfer and misuse of public money.
The case has raised serious concerns regarding the protection of government funds, financial accountability and compliance with banking procedures. The CBI is continuing its efforts to establish the complete chain of transactions, identify the individuals allegedly involved and trace the movement of the misappropriated funds.
Six IAS Officers and Bank Officials Named in the Chargesheet
The latest chargesheet names six IAS officers belonging to the Haryana cadre, three officials of IDFC First Bank, one official of AU Small Finance Bank and nine other officials of the Haryana Government.
The accused have been charged under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) for alleged offences including criminal conspiracy, cheating, destruction of evidence, forgery, using forged documents as genuine, making false or misleading entries in accounts, criminal breach of trust and abetment. The chargesheet also includes alleged offences relating to bribery and criminal misconduct under the Prevention of Corruption Act.
According to the CBI, the investigation has revealed an alleged conspiracy involving public servants and officials of the two banks. The agency suspects that the accused devised and implemented a planned scheme to divert government funds through designated bank branches and subsequently transfer the money to unauthorised third parties.
The allegations form part of the evidence presented before the competent court. The guilt or innocence of the accused will be determined through the judicial process.
How Government Funds Were Allegedly Diverted
According to the CBI’s investigation, funds belonging to eight departments and organisations of the Haryana Government were transferred from various scheduled banks to selected branches of IDFC First Bank and AU Small Finance Bank.
The agency has alleged that these particular branches were chosen as part of the conspiracy because the accused bank officials were posted there. Bank accounts were opened at these branches, and government funds were deposited into them.
The investigation further alleges that the transfers were carried out in violation of the financial prudence and fraud-prevention guidelines issued by the Finance Department of the Haryana Government.
Once the money was deposited into these accounts, it was allegedly misappropriated through fraudulent transactions and transferred to third-party accounts that had no connection with the concerned government departments.
The CBI has alleged that the funds were subsequently moved through multiple bank accounts in a process known as layering. This made it more difficult to track the original source and destination of the money. The funds were allegedly converted into cash at a later stage, enabling the accused to obtain undue financial benefits.
The agency is examining the complete trail of these transactions to determine how the money was transferred, where it ultimately went and who benefited from the alleged scheme.
Eight Haryana Government Departments and Organisations Affected
According to the CBI, the alleged financial fraud affected funds belonging to eight departments and organisations of the Haryana Government. These include:
- Panchayat Department.
- Municipal Corporations of Panchkula and Kalka.
- Haryana School Shiksha Pariyojna Parishad (HSSPP).
- Haryana Labour Welfare Board (HLWB).
- Haryana State Agricultural Marketing Board (HSAMB).
- Haryana State Pollution Control Board (HSPCB).
- Haryana Power Generation Corporation Limited (HPGCL).
- Other departmental fund arrangements covered by the investigation, as detailed in the official case record.
The total amount involved in the alleged fraud has been estimated at ₹504 crore.
Government funds are intended to support public services, welfare programmes, infrastructure development and other essential administrative activities. Allegations of large-scale diversion of such funds therefore raise important questions about financial oversight, internal controls and the mechanisms used to prevent fraud within public institutions.
The investigation seeks to establish how the funds were allegedly diverted and whether the individuals concerned violated their legal and official responsibilities.
CBI Takes Over Investigation from Haryana Vigilance Bureau
The investigation was initially handled by the Haryana State Vigilance and Anti-Corruption Bureau. Following a request from the Haryana Government, the CBI took over the investigation.
After assuming responsibility for the case, the agency began examining the alleged financial irregularities, the roles of the government and bank officials, and the transactions through which the funds were reportedly transferred.
The investigation has involved examining banking records, identifying suspicious transactions and collecting evidence relating to the alleged diversion of government money. The agency is also working to establish the links between the accounts involved and the individuals suspected of participating in the alleged conspiracy.
Before filing the latest chargesheet, the CBI had already filed chargesheets against 18 other accused persons in the same case. Those accused included officials of IDFC First Bank and AU Small Finance Bank, public servants of the Haryana Government, private individuals and private companies.
With the filing of the third chargesheet, the total number of individuals chargesheeted in the case has reached 37.
54 Searches Conducted and 26 Accused Arrested
As part of its investigation, the CBI has conducted 54 searches so far. During these operations, the agency has recovered or seized gold worth approximately ₹20 crore, along with other incriminating evidence.
The CBI has also arrested 26 accused persons in connection with the case.
The searches and seizures form part of the agency’s efforts to gather evidence, identify financial links and establish the possible involvement of the individuals under investigation. The seized material may assist investigators in examining the alleged proceeds of crime and tracing the movement of funds.
A key aspect of the ongoing investigation is to establish the complete financial trail of the alleged fraud. This includes identifying the accounts through which the money passed, determining its final destination and examining whether any assets were acquired using the alleged proceeds of crime.
The agency continues to investigate the remaining aspects of the case and the possible involvement of other individuals.
CBI Also Investigating Two Other Cases in Chandigarh
In addition to the Haryana government funds case, the CBI has taken over investigations into two other cases relating to the Union Territory of Chandigarh.
The first case concerns Chandigarh Smart City Limited (CSCL) and the Municipal Corporation of Chandigarh. The second relates to the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST).
According to the CBI, chargesheets have already been filed in both cases.
Further investigation is continuing in all three matters to examine the roles of other suspected individuals and accused persons, where relevant. The agency is seeking to establish the facts surrounding the alleged irregularities and ensure that any criminal responsibility supported by evidence is addressed through the legal system.
CBI Reaffirms Commitment to Tracing Public Funds
The CBI has reiterated its commitment to bringing all responsible individuals to justice and tracing the complete flow of the government funds allegedly misappropriated in the case.
The agency is also focusing on identifying and tracing the proceeds of the alleged crime to establish where the money went and who may have benefited from the transactions.
The ₹504 crore case highlights the importance of strong financial controls, transparency and accountability in the management of public funds. It also underlines the need for effective monitoring of government accounts and compliance with established banking and financial procedures.
The filing of the third chargesheet marks another significant development in the investigation. With 37 individuals now chargesheeted, 26 arrests reported and further investigations continuing, the CBI is working to establish the full extent of the alleged fraud and identify any additional persons involved.
The case will proceed through the judicial process, where the allegations and evidence will be examined in accordance with the law. The accused are presumed innocent unless proven guilty by a competent court.
News Source: Central Bureau of Investigation (CBI) – Official Press Release dated 2 September 2026.
