BREAKING: IAS Officer Arrested by CBI in Government Funds Misappropriation Case
Babushahi Network
New Delhi/Chandigarh, June 18, 2026: In a major development, the Central Bureau of Investigation (CBI) has arrested Haryana Cadre IAS officer Ram Kumar Singh (R.K. Singh), the then Commissioner of the Municipal Corporation (MC), Panchkula, in connection with the alleged misappropriation of government funds.
The case pertains to the alleged illegal diversion of crores of rupees from the Municipal Corporation's account maintained with IDFC First Bank, Sector 32, Chandigarh.
According to the CBI, the bank account was opened in gross violation of Haryana Government Finance Department rules. The agency alleges that crucial information was deliberately concealed in the account opening documents to facilitate fraudulent financial transactions at a later stage.
The CBI claimed in its official statement that IAS officer R.K. Singh, in alleged connivance with bank officials, handed over several signed cheques through intermediaries on the pretext of creating Fixed Deposits (FDs). However, instead of investing the money in FDs, the funds were allegedly withdrawn and diverted to the accounts of shell companies.
Following his arrest, the CBI conducted searches at R.K. Singh's residences in Chandigarh and Karnal, recovering several important and incriminating documents.
Senior Accountant Already Arrested; Scam Part of ₹504-Crore Fraud
The CBI has stated that the then Senior Accountant of the Municipal Corporation had also played an active role in the alleged fraud and had already been arrested earlier.
It may be recalled that the CBI took over the investigation from the Haryana State Vigilance and Anti-Corruption Bureau on the recommendation of the Haryana Government.
The alleged fraud involving the Panchkula Municipal Corporation is estimated at ₹79.46 crore and is said to be part of a much larger ₹504-crore scam, involving the diversion of government funds from eight different Haryana Government departments through fraudulent Fixed Deposit transactions.
The CBI has so far filed charge sheets against 17 accused, including six officials of IDFC First Bank/AU Small Finance Bank, three government employees, two companies and six private individuals.
CBI Also Probing Chandigarh Smart City and CREST Cases
The CBI has also informed that it is investigating two other major cases related to the Chandigarh Union Territory.
In one case, a charge sheet has been filed against five bankers, one Chandigarh Smart City Limited (CSCL) official and one private individual.
In another case relating to CREST (Chandigarh Renewal and Energy Saving Technology), action has been initiated against five bankers, two CREST officials, four private individuals and two companies, while a senior Indian Forest Service (IFoS) officer has already been arrested.
The CBI, in its press note, reiterated that no person involved in the misappropriation of public funds would be spared and that investigations into all related cases are progressing swiftly.