“Public cash was allegedly traded for dances, drinks and escorts—moreover crores in money and gold value lakhs paid by mastermind Ribhav Rishi, then an IDFC First Financial institution supervisor in Chandigarh,” a supply stated.
Funds belonging to eight Haryana authorities departments—together with the Haryana State Agricultural Advertising Board (HSAMB), Haryana Energy Era Company Ltd (HPGCL), Haryana State Air pollution Management Board (HSPCB) and the Haryana College Shiksha Pariyojna Parishad (HSSPP)—stored in numerous empanelled banks had been allegedly transferred to particular branches of IDFC First Financial institution and AU Small Finance Financial institution, the place the now-accused financial institution officers had been posted.
Accounts had been opened at these branches and the federal government funds routed into them as a part of the alleged conspiracy.
In keeping with the CBI, the fraud operated by means of a four-level ‘scheme’ involving financial institution officers and authorities officers, with public funds siphoned off by means of pretend mounted deposits, solid cheques, shell firms and layered transactions.
First, accused financial institution managers allegedly persuaded authorities officers dealing with the accounts to park public funds in mounted deposits with their banks. Second, financial institution insiders allegedly siphoned off the cash utilizing pretend debit notes and solid cheques, whereas suppressing transaction alerts to hide the transfers. Third, a community of shell firms was allegedly used to layer and route the siphoned funds by means of a number of channels.
After which, jewelers and actual property gamers had been recognized to transform the diverted cash into belongings. The CBI has present in its probe that alleged mastermind, Ribhav Rishi, then an IDFC First Financial institution supervisor in Chandigarh, purchased an opulent condo in Dubai, luxurious watches value crores, and a model new BMW automobile in simply two years of beginning this “scheme”.
These particulars kind a part of the third chargesheet filed on Wednesday by the CBI in opposition to six IAS officers—Vineet Garg, Pankaj Agarwal, Mohd Shayin, Dr Saket Kumar, Pardeep Kumar and Ram Kumar Singh—within the IDFC First bank-AU Small Finance Financial institution rip-off case. The chargesheet was filed earlier than the particular decide for CBI instances in Panchkula.
Apart from the six IAS officers, 9 different Haryana authorities officers and 4 financial institution officers have been named within the chargesheet. A complete of 37 individuals have been chargesheeted within the case to this point.
Of the six accused IAS officers, Pankaj Agarwal, Pardeep Kumar and Ram Kumar Singh have been arrested and are in judicial custody, whereas the opposite three have been chargesheeted with out being arrested.
The alleged fraud first surfaced in February 2026 when a Haryana authorities official discovered discrepancies between departmental data and the precise steadiness in an account whereas attempting to shut it.
The case was taken up by the Haryana State Vigilance and Anti-Corruption Bureau. In March, the Haryana authorities sought a CBI probe, and the central company formally took over the case and registered an FIR in April.
Additionally learn: IDFC FIRST Bank fraud: CBI arrests IAS officer who oversaw Assembly, Rajya Sabha polls in Haryana
‘Escorts, mujras, and lakhs showered’
In keeping with the CBI, senior IAS officer Pankaj Agarwal, who allegedly performed a central position within the fraud because the then chairman of the HSAMB, obtained “undue benefits” starting from ‘mujra’ events and luxurious resort stays to the alleged association of escorts—all paid for by Ribhav Rishi of IDFC in money.
The CBI alleges that the proceeds of crime went into funding these luxurious events attended by a number of accused. Ladies dancers had been allegedly introduced from Delhi for some events in Chandigarh. On one event, the company claims, forex notes operating into lakhs of rupees had been showered on the dancers.
“As a favour in return for opening accounts by bypassing FD tips, Ribhav of IDFC supplied unlawful gratification to him within the type of mujra dance events, association of girls for sexual favours, liquor, luxurious resort stays and different bills,” a supply stated.
In keeping with one other CBI supply, a number of such events had been allegedly organised by Rishi at a non-public villa in Mohali’s Zirakpur on Agarwal’s calls for.
The sources stated that Aggarwal would particularly request for events on the villa with particular dance teams with overseas artistes. In truth, lakhs in recent forex notes had been procured for showering on dancers.
Talking to ThePrint, Vishal Garg, lawyer representing Pankaj Agarwal stated, “These allegations are baseless. No restoration has been made out of him, even within the searches that had been carried out at his residence. He’s harmless.”
Deepanshu Bansal, Advocate for Ribhav Rishi additionally stated that the allegations on face of it are false. “We’re not equipped with supplementary report filed in opposition to these IAS officers by CBI however the allegations are strongly and categorically denied of their entirety,” he stated
He added, “You will need to emphasise that allegations contained in a chargesheet aren’t proof of guilt. Each allegation needs to be established by legally admissible and cogent proof earlier than the competent courtroom. As of now, supplementary report has not been given to us, and fees aren’t even framed. My consumer reserves his proper to answer and problem every doc, assertion and piece of proof relied upon by the investigating company in accordance with regulation,” he stated.
“The try to painting allegations as established info, with out adjudication by the competent courtroom, is wholly unwarranted and prejudicial to my consumer’s rights,” he stated.
In the meantime, explaining Agarwal’s alleged position within the alleged rip-off, the supply stated it was he who launched Rishi to Rajesh, the division’s chief monetary adviser (CFA), even earlier than any proposal to open an IDFC First Checking account had originated throughout the division.
It’s alleged that the accounts had been subsequently opened at Agarwal’s occasion, giving IDFC choice over different empanelled banks.
The company has additionally raised questions over Agarwal’s conduct after an allegedly fraudulent debit of Rs 10 crore from an HSAMB account with IDFC FIRST Financial institution surfaced in February 2026.
“As an alternative of directing that the matter be reported to the financial institution, Finance Division or law-enforcement businesses, Agarwal performed down the transaction and continued to withhold instructions to lodge a grievance,” the supply stated.
Chargesheeted within the case, 2000-batch officer Agarwal is among the many senior-most of the six accused IAS officers. A civil servant trusted by the BJP authorities, he served as Haryana’s Chief Electoral Officer throughout the 2019 and 2024 Meeting elections, and was returning officer for the 2026 Rajya Sabha elections.
‘Meals at Koyo Koyo, drinks at Corby’s’
In its checklist of the alleged “undue benefits” obtained by IAS officers, the CBI has claimed that Mohammad Shayin—then the managing director of the HPGCL—dined on a number of events on the Koyo Koyo, and Corby’s on the Hyatt Centric, a five-star resort in Chandigarh, along with his spouse and mates, with payments paid by alleged mastermind Ribhav Rishi.
Apart from this, Shayin additionally obtained money in crores, supply stated.
“He obtained undue benefit by way of money in crores and visits for eating at five-star accommodations along with his household and mates in alternate for facilitating fast approvals for opening accounts and inserting mounted deposits with IDFC,” the supply stated.
Mohammed Shayin is a 2002-batch Haryana-cadre IAS officer who served as Commissioner and Secretary, Housing for All Division, and earlier as Managing Director of HPGCL.
The CBI has linked the alleged favours to the way during which HPGCL funds had been moved to IDFC. It alleges {that a} financial savings account opened within the identify of the Dry Fly Ash Fund bypassed Finance Division safeguards: no prior approval was sought, no requirement was recorded and no quotations had been invited from empanelled banks.
The account was additionally opened on the department the place Rishi was supervisor slightly than the department nearest to the HPGCL. It subsequently remained dormant for eight months, which reveals that they had been making ready for the offence, the CBI alleged.
It additional alleges that, to learn IDFC, a operating, interest-earning mounted deposit with IndusInd Financial institution was prematurely damaged and the funds shifted to IDFC.
“The transfer was justified on file by means of a purported supply of 14% compensatory curiosity, a fee that investigators discovered had by no means been supplied by the financial institution,” the supply stated.
In keeping with the CBI, the promised 14 p.c return was as a substitute a non-public dedication by the accused, Rishi. Whereas real financial institution curiosity was robotically credited at abnormal charges, the distinction was allegedly paid by means of demand drafts funded by entities managed by the accused.
The company claims this cash itself got here from funds siphoned from different authorities our bodies, together with the HSPCB and the Haryana College Shiksha
Pariyojna Parishad, the Welfare Board and the Panchayat Division.
Investigators have additionally cited repeated follow-ups with Rishi for fee of the promised “curiosity”, arguing that real financial institution curiosity would have been credited robotically. The CBI’s case is that the HPGCL was successfully being paid the extra “curiosity” with public cash allegedly siphoned from different authorities entities.
ThePrint contacted Mohammad Shayin by means of calls and textual content messages over WhatsApp. He simply stated, “no feedback”.
‘Crores value hawala transactions’
Ram Kumar Singh, a promoted 2012-batch IAS officer who was then the Commissioner, Municipal Company Panchkula, and concurrently District Municipal Commissioner with supervisory management over Kalka Municipal Council, was allegedly the most important beneficiary of the rip-off.
In keeping with sources, he performed a key position in facilitating the position of municipal funds with IDFC First Financial institution. “Ram Kumar Singh obtained a number of
crores in a number of tranches by means of hawala. Some had been paid at his Sector 19A residence in Chandigarh,” a supply stated.
The CBI alleges the funds had been made in return for Singh facilitating the position of municipal funds with IDFC.
Investigators have additionally flagged the velocity at which the transaction was pushed by means of. Singh allegedly signed a citation letter on 30 October final yr giving banks solely till 31 October to reply. The whole course of—from analysis and approval to untimely withdrawal of deposits and creation of Rs 80 crore in FDRs was accomplished on 31 October.
“It was all executed in such a brief span to favour IDFC, because the deal to ebook FDs after opening accounts and transferring funds from different banks had already been executed,” a supply stated.
ThePrint contacted Advocate DS Chawla representing Singh, over WhatsApp calls and messages however didn’t obtain a response. The report might be up to date if and when he responds.
Crores in money, gold value lakhs
The CBI alleged Vineet Garg, because the then chairman of the HSPCB, performed a key position within the alleged conspiracy, and obtained crores in money and in addition gold in flip.
“Every thing was supervised and managed by him. He obtained quantities value crores by means of a center man, together with gold value lakhs,” the supply stated.
In keeping with the CBI investigation, Garg facilitated IDFC First Financial institution’s entry into the Haryana State Air pollution Management Board (HSPCB), allegedly eradicating hurdles and enabling the financial institution to safe enterprise it couldn’t have obtained on benefit.
Investigators allege that till Garg took cost, the Board’s funds had been largely positioned with nationalised banks and main personal lenders similar to HDFC, Axis and ICICI, whereas smaller banks weren’t thought of. This allegedly modified throughout Garg’s tenure, paving the best way for IDFC.
The CBI has additionally flagged his resolution to shift the method from e-files to bodily recordsdata and alleged that he personally vetted related notesheets.
The company has additional cited what it describes as an identical episode throughout Garg’s earlier tenure as Further Chief Secretary, College Training. Two financial institution accounts of the Haryana College Shiksha Pariyojna Parishad had been allegedly opened with Kotak Mahindra Financial institution in June 2024 with out obligatory approvals, a matter the CBI says Garg had personally handled.
The 1991-batch IAS officer of Further Chief Secretary rank is at quantity 4 in Haryana’s bureaucratic hierarchy.
ThePrint contacted Vineet Garg over textual content messages and telephone calls however didn’t obtain a response.
(Edited by Ajeet Tiwari)
Additionally learn: Inside Rs 590-cr Haryana IDFC public funds scam—ex-banker with Dubai flat, shell firms, suitcases of cash
