CBI arrests IAS officer in Panchkula Municipal Corporation funds embezzlement case

Chandigarh, June 18 (IANS) The Central Bureau of Investigation (CBI) on Thursday arrested IAS officer and former Commissioner of Municipal Corporation (MC) in Panchkula, Ram Kumar Singh, in connection with the misappropriation of government funds to the tune of Rs 79.46 crore maintained by the IDFC First Bank branch in Chandigarh.

Investigation has revealed that the account was opened in violation of the extant guidelines of the Haryana Finance Department, and particulars recorded in the account opening form were entered in a manner designed to conceal the fraudulent transactions intended to be carried out subsequently, the CBI said in a statement.

Pursuant to an understanding with the accused officials of IDFC First Bank, then MC Commissioner Singh handed over multiple signed cheques to bank officials through middlemen under the pretext of opening fixed deposits. The funds were debited using these cheques, and no fixed deposit was ever created.

The debited amounts were diverted to shell entities controlled and operated by the accused bank officials.

The misappropriation was carried out with the knowledge and active participation of the then Commissioner and the civic body’s senior accountant, who has already been arrested by the CBI.

Investigation conducted so far revealed the active role of Singh. His residences in Chandigarh and Karnal have also been searched and several incriminating documents have been recovered, the investigating agency said.

The CBI had taken over the investigation from the state Vigilance and Anti-Corruption Bureau at the request of the state government.

The fraud in the Panchkula municipal body involved misappropriation of Rs 79.46 crore, forming part of a larger scam in Chandigarh’s Sector 32 IDFC First Bank branch in which funds to the tune of Rs 504 crore of eight Haryana government departments were siphoned off through forged, non-existent fixed deposits, debit notes and routed to shell entities. Till date, 17 accused have been charge-sheeted by the CBI, including six officials of IDFC First Bank/AU Small Finance Bank, three Haryana government officials, two companies, and six private individuals.

The CBI has taken over two other cases from Chandigarh — one pertaining to Chandigarh Smart City (CSCL) of Chandigarh Municipal Corporation and another pertaining to CREST Chandigarh. One charge sheet each in these cases has also been filed by the CBI. The federal agency has charge sheeted five bankers, one CSCL official and one private person in the CSCL case; and five bankers, two CREST officials, four private people and two companies in the CREST case.

–IANS

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