The CBI Special Court, Haryana, today dismissed the regular bail application of former IAS officer Pardeep Kumar in the Rs 657-crore IDFC First Bank-AU Small Finance Bank scam, involving the alleged siphoning off of Rs 159.86 crore in Haryana State Pollution Control Board (HSPCB) funds.The CBI has accused Kumar of abusing his position as a public servant and facilitating the alleged fraud in collusion with accused bankers.
A 2011-batch IAS officer, Kumar served as HSPCB Member Secretary from August 31, 2022, to December 10, 2025, covering the period during which the alleged fraud took place.
According to the CBI, Kumar prepared comparative charts of interest rates offered by banks across five investment cycles but repeatedly recommended IDFC First Bank, allegedly overlooking higher bids, discrepancies in quotations and prescribed investment limits.
In the first cycle, Rs 50 crore was invested with IDFC First Bank, with Kumar citing a Finance Department circular dated July 12, 2024, to record the bank’s investment limit at Rs 50 crore.
During the second cycle, Jana Small Finance Bank offered the highest rate of 8.45% on deposits above Rs 3 crore. The CBI alleged Kumar lowered its quotation in the comparative chart to favour IDFC First Bank. He also recommended another Rs 17.90 crore investment with the bank despite the stated Rs 50-crore limit having already been exhausted.
In the third cycle, Kumar allegedly recommended investing Rs 37.78 crore with IDFC First Bank on the basis of an unsigned rate quotation of 7.10%. IndusInd Bank had offered the same rate, and guidelines required an equal division of funds between banks quoting identical rates, the agency said.
In the fourth cycle, Rs 8 crore was deposited in IDFC First Bank’s savings account at 7.25% on the basis of an unstamped letter, without inviting quotations from other banks. The highest fixed deposit rate quoted in the exercise was 7.02%. The CBI questioned the acceptance of a savings account rate higher than the fixed deposit rates offered by banks.
In the fifth cycle, another Rs 50 crore was invested with IDFC First Bank despite Bandhan Bank offering the highest rate, the CBI alleged. Kumar reportedly included a bank letter dated October 15, 2025, although the deadline for submitting rates was October 8. The letter was allegedly unstamped and did not disclose the signatory’s name.
The cumulative exposure to IDFC First Bank reached Rs 163.68 crore, more than three times the prescribed ceiling, according to the CBI.
The agency alleged that Rs 159.86 crore in HSPCB funds, along with Rs 43.81 lakh in interest, was siphoned off through transfers to six entities, including Capco Fintech Services, Disha Traders and Mannat Contractor.
The CBI has accused Kumar of abetting offences allegedly committed by the bankers and misusing his official position. He has been in custody since June 30, the day he retired from service.
