The Central Bureau of Investigation (CBI) opposed the bail application of suspended IAS Pankaj Agarwal, who was arrested in the Rs 657 crore IDFC First Bank scam last month.
The agency told court that IAS officer Pankaj Agarwal functioned as a close associate of the mastermind of the Rs 657 crore scam, Ribhav Rishi, and received monetary and “unethical” benefits from him.
The CBI revealed that Agarwal's role has come to light on two separate occasions in two different departments under his charge. Allegedly, he facilitated the opening of bank accounts in violation of the state's Finance Department's guidelines, thereby enabling the diversion of government funds.
In its reply opposing Agarwal's bail application, the CBI outlined the chain of events. Agarwal held the charge of Principal Secretary, School Education, from December 10, 2024, to June 16, 2025. Within seven days of assuming charge, IDFC First Bank, Sector-32, Chandigarh, submitted a proposal on December 17, 2024, for opening a bank account for the Haryana School Shiksha Pariyojna Parishad (HSSPP). The proposal was addressed to him, marked on December 19, 2024, and routed to the concerned subordinate officer. Agarwal approved the opening of the bank account on December 31, 2024, and sanctioned the transfer of Rs 100 crore from an existing Kotak Mahindra Bank account.
CBI alleges Pankaj Agarwal was fully aware
The CBI alleged that the account at IDFC First Bank was opened without any legitimate administrative necessity and clearly contravened the extant Finance Department guidelines. It pointed out that no competitive process was followed, no quotations were invited from empanelled banks and the proposal was processed solely on the ostensible ground that IDFC was offering a higher interest rate, even without comparing the rates. Furthermore, the transfer of funds also violated the prescribed investment ceiling. Against the limit of Rs 50 crore for IDFC First Bank, Rs 100 crore was transferred with Agarwal's approval.
Arrested on June 22 and suspended since then, Agarwal has claimed innocence in his bail application. He asserts he has never demanded or accepted a bribe and that his sole role was granting administrative approvals to proposals from subordinate officers. He maintains there is no evidence against him.
The CBI countered that he pressured subordinate staff and officers to alter the notesheet and process the file favourably, ultimately leading to the opening of the account at IDFC First Bank, Sector-32, Chandigarh. This account contained 101 fraudulent debit transactions totalling Rs 182.93 crore and 33 fraudulent credit transactions totalling Rs 132.39 crore, resulting in a net misappropriation of Rs 50.54 crore.
