Chandigarh, 18 June (H.S.) The Central Bureau of Investigation has arrested IAS officer Ram Kumar Singh, the then Commissioner of Municipal Corporation, Panchkula, in connection with the alleged misappropriation of government funds from the civic body’s account maintained with the Sector 32, Chandigarh branch of IDFC First Bank.

According to the CBI, investigation revealed that the account was opened in violation of the existing guidelines of the Haryana Finance Department. The agency alleged that details in the account opening form were entered in a manner intended to conceal fraudulent transactions planned at a later stage.

The CBI said that Ram Kumar Singh, while serving as Commissioner of MC Panchkula, allegedly handed over multiple signed cheques to accused bank officials through middlemen under the pretext of opening fixed deposits. However, the agency alleged that no fixed deposits were created and the funds debited through these cheques were diverted to shell entities controlled and operated by the accused bank officials.

The agency further claimed that the misappropriation was carried out with the knowledge and active participation of the then Commissioner and the Senior Accountant of MC Panchkula. The Senior Accountant has already been arrested by the CBI in the case. After finding an active role of Singh during the investigation, the CBI arrested him. His residences in Chandigarh and Karnal were also searched, during which several incriminating documents were recovered.

The CBI had taken over the investigation from the State Vigilance and Anti-Corruption Bureau, Haryana, on the request of the state government. The alleged fraud in MC Panchkula involves misappropriation of around ₹79.46 crore. It forms part of a larger scam linked to the Sector 32 branch of IDFC First Bank, where funds amounting to ₹504 crore belonging to eight Haryana government departments were allegedly siphoned off through forged or non-existent fixed deposits and debit notes before being routed to shell entities.

So far, the CBI has chargesheeted 17 accused in the Haryana case, including six bank officials of IDFC First Bank and AU Small Finance Bank, three public servants of the Haryana government, two companies and six private persons.

The CBI has also taken over two related cases from Chandigarh Union Territory, one involving Chandigarh Smart City and the Chandigarh Municipal Corporation, and another involving CREST Chandigarh. Chargesheets have also been filed in these cases. In the Chandigarh Smart City case, five bankers, one CSCL official and one private person have been chargesheeted. In the CREST case, the agency has chargesheeted five bankers, two CREST officials, four private persons and two companies. A senior IFoS officer has already been arrested in the CREST case.

The agency said it remains committed to bringing all those responsible to justice and fully tracing the trail of misappropriated public funds.

Hindusthan Samachar / GURSHARAN SINGH