CBI: Former Panchkula Civic Chief Not Cooperating in ₹79 Crore Fraud Case
A local court in Panchkula on Monday remanded former municipal corporation commissioner Ram Kumar Singh to judicial custody in connection with a Rs 79.46-crore fraud linked to the larger Rs 590-crore IDFC First Bank scam case. The Central Bureau of Investigation (CBI) told the court that Singh, the first Haryana-cadre IAS officer arrested in the case, did not cooperate with the inquiry and that some digital evidence and proceeds of crime were yet to be recovered.
Singh and former development and panchayats department superintendent Prince Sharma were produced before Additional Sessions Judge-cum-Vacation Judge Amit Sharma after their three-day remand ended. The CBI submitted an application seeking 14-day judicial custody, citing Singh's lack of cooperation and the ongoing nature of the investigation.
During custodial interrogation, the CBI confronted Singh with digital and documentary evidence related to the alleged diversion of government funds. This included evidence of opening an IDFC Bank account, fixed deposit transactions, communications with co-accused persons, and routing money through shell entities. The investigation revealed Singh's involvement when he served as municipal corporation commissioner and commissioner of the Kalka municipal council.
The CBI's application detailed that investigators confronted the accused with evidence of opening a new account in IDFC First Bank's Chandigarh Sector 32 branch, the process of calling quotations for fixed deposits, and SMS alerts received on registered mobile numbers. The accused were questioned about steps taken after learning of fraudulent transactions and account statements received on their phones.
The agency also claimed that digital evidence indicated money was delivered by carriers, and investigators sought explanations on where the alleged ill-gotten funds were ultimately parked. Both accused were questioned about their communications with co-accused individuals and the deletion of related data from their mobile devices. They were asked about handing over cheques to co-accused to allegedly siphon off funds, when they became aware of the fraud, and whether any advantages were received in return for favours.
The CBI also sought details regarding other bank officials, government functionaries, and private individuals who may have facilitated the alleged fraud. Investigators questioned why funds were transferred to shell companies and subsequently routed back to government accounts without apparent justification, and why cheques were issued for fixed deposits when a letter would have sufficed.
In its application, the CBI described the matter as a 'large-scale, multi-layered fraud by way of fraudulent banking operations and fictitious transactions to divert Government funds in shell entities in connivance with public servants'. The agency said unauthorised transactions in bank accounts opened by various Haryana government departments had been identified, and the role of other accused, including public servants, was still under investigation.
The CBI submitted that it was scrutinising documents recovered during searches at the residences of Singh and Sharma, and that investigators were still tracing the trail of misappropriated government funds. The agency argued that the accused wield considerable influence over people connected with the alleged conspiracy, including subordinate officials and material witnesses, and sought judicial custody to prevent tampering of evidence.
