3 min readChandigarhUpdated: Jun 27, 2026 11:01 AM IST
The Haryana government on Friday suspended senior IAS officer Pankaj Agarwal after he was arrested by the Central Bureau of Investigation (CBI) in connection with an alleged Rs 657 crore IDFC First Bank fraud.
The suspension follows service rules that mandate action against an officer held in custody for more than 48 hours. Agarwal, a 2000-batch officer, was arrested on June 22 and is currently lodged in Ambala jail.
Agarwal is the third IAS officer to be suspended as the investigation into the multi-crore scam continues. Earlier, on April 8, the Haryana government suspended Pradeep Kumar (2011 batch) and Singh (2012 batch). This week, Singh was arrested by the CBI.
The CBI is investigating at least seven IAS officers of the Haryana cadre.
An order issued by Chief Secretary Anurag Rastogi stated that Agarwal’s suspension takes effect under Rule 3(2) of the All India Services (Discipline and Appeal) Rules, 1969, which provides for the deemed suspension of an officer detained in official custody beyond 48 hours. The order also clarified that he will receive a subsistence allowance as prescribed under the service rules until further orders.
Before his suspension, Agarwal was serving as principal secretary of the architecture department.
According to the CBI, Agarwal is accused of allegedly misappropriating more than Rs 50 crore from the Haryana School Shiksha Pariyojana Parishad during his tenure as principal secretary, school education department. Investigators have also alleged that he was involved in the embezzlement of nearly Rs 10 crore from the Haryana State Agriculture Marketing Board while serving as principal secretary of the agriculture and farmers’ welfare department.
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The CBI took over the investigation into the alleged Rs 657 crore IDFC First Bank fraud on April 8. On the same day, Agarwal was shifted to the architecture department, while several other IAS officers named in the case were assigned less significant roles.
Accused of favouring BJP during Rajya Sabha polls
Agarwal had previously held several influential positions in the Haryana administration and was regarded as being close to the ruling BJP government. He served as the state’s chief electoral officer and oversaw the 2024 Haryana Assembly elections.
His role as returning officer during the March 16 Rajya Sabha elections attracted controversy, with the Congress accusing him of improperly rejecting votes cast by its MLAs while allowing allegedly invalid votes in favour of the BJP-backed Independent candidate Satish Nandal.
Three days after the Rajya Sabha elections, Agarwal was appointed principal secretary of the irrigation and water resources department, adviser to the Haryana Saraswati Heritage Board, and principal secretary of the mines and geology department—despite the corruption probe being underway.
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Following the Rajya Sabha election, the Congress Legislative Party submitted a memorandum to Haryana Governor Ashim Kumar Ghosh, alleging that Agarwal acted arbitrarily and favoured BJP-supported candidates.