New Delhi: In its third chargesheet in the alleged Rs 590-crore IDFC–AU Small Finance Bank public-funds scam, the CBI has outlined a string of alleged inducements — ranging from five-star hospitality and escort services to “mujra” nights at a private farmhouse and cash and gold routed through hawala — tied to at least four IAS officers now facing trial.
According to the agency, these benefits formed part of a planned quid pro quo to shift government money from the state exchequer into specific branches of private banks before siphoning it off through a multi-layered fraud.
“Public money was allegedly traded for dances, drinks and escorts — besides crores in cash and gold worth lakhs paid by mastermind Ribhav Rishi, then an IDFC First Bank manager in Chandigarh,” a source said.
How The Siphon Worked
Funds belonging to eight Haryana departments and boards — including the Haryana State Agricultural Marketing Board (HSAMB), Haryana Power Generation Corporation Ltd (HPGCL), Haryana State Pollution Control Board (HSPCB) and the Haryana School Shiksha Pariyojna Parishad (HSSPP) — were allegedly moved from empanelled banks into accounts at IDFC First Bank and AU Small Finance Bank where the accused officials were posted, the CBI claims.
The agency describes a four-step modus operandi: bank managers first persuaded government account-holders to place public money as fixed deposits; insiders then allegedly siphoned it using fake debit notes and forged cheques while suppressing transaction alerts; a network of shell companies layered the proceeds; and finally, jewellers and real-estate players converted the funds into assets.
Investigators say alleged mastermind Ribhav Rishi used part of the proceeds to buy a plush apartment in Dubai, luxury watches worth crores and a brand-new BMW within two years of launching the scheme.
The fraud first came to light in February 2026 when a Haryana government official noticed discrepancies between departmental records and the actual balance while trying to close an account. The case was initially taken up by the Haryana Vigilance and Anti-Corruption Bureau before the state sought a CBI probe in March; the central agency formally registered an FIR in April, as reported by The Print.
Six IAS Officers Named
The chargesheet, filed on Wednesday before the special CBI judge in Panchkula, names six IAS officers — Vineet Garg, Pankaj Agarwal, Mohd Shayin, Dr Saket Kumar, Pardeep Kumar and Ram Kumar Singh — along with nine other government officials and four bank officers. So far, 37 people have been chargesheeted in the case.
Of the six, Pankaj Agarwal, Pardeep Kumar and Ram Kumar Singh are arrested and in judicial custody; the others have been chargesheeted without arrest.
Mujras, Escorts, Cash For Favours
The CBI alleges that Pankaj Agarwal, then HSAMB chairman, received “undue advantages” including mujra parties, luxury hotel stays and arrangement of escorts, all funded by Rishi. Dancers were allegedly brought from Delhi for Chandigarh parties, with currency notes running into lakhs showered on them.
“As a favour in return for opening accounts by bypassing FD guidelines, Ribhav of IDFC provided illegal gratification to him in the form of mujra dance parties, arrangement of women for sexual favours, liquor, luxury hotel stays and other expenses,” a source said.
Several such parties were allegedly organised at a private villa in Zirakpur on Agarwal’s demands, with requests for specific dance groups including foreign artistes, and fresh currency procured to shower on dancers, sources told the agency.
“These allegations are baseless. No recovery has made from him, even in the searches that were carried out at his residence. He is innocent,” said Vishal Garg, lawyer for Pankaj Agarwal.
Deepanshu Bansal, advocate for Ribhav Rishi, said: “We are not supplied with supplementary report filed against these IAS officials by CBI but the allegations are strongly and categorically denied in their entirety.”
He added: “It is important to emphasise that allegations contained in a chargesheet are not proof of guilt. Every allegation has to be established by legally admissible and cogent evidence before the competent court. As of now, supplementary report has not been given to us, and charges are not even framed. My client reserves his right to respond to and challenge each and every document, statement and piece of evidence relied upon by the investigating agency in accordance with law.”
“The attempt to portray allegations as established facts, without adjudication by the competent court, is wholly unwarranted and prejudicial to my client’s rights,” he said.
Sources say Agarwal introduced Rishi to the department’s chief financial adviser even before any proposal to open an IDFC account, and later gave the bank preference. After a fraudulent Rs 10-crore debit surfaced in February 2026, Agarwal allegedly downplayed it and withheld directions to lodge a complaint.
Five-Star Dining On Rishi’s Tab
Mohammad Shayin, then HPGCL MD, is alleged to have dined repeatedly at Koyo Koyo and Corby’s at Hyatt Centric, Chandigarh, with bills paid by Rishi, besides receiving cash in crores.
“He received undue advantage in terms of cash in crores and visits for dining at five-star hotels with his family and friends in exchange for facilitating quick approvals for opening accounts and placing fixed deposits with IDFC,” the source said.
The CBI links this to the opening of a Dry Fly Ash Fund account at Rishi’s branch, its eight-month dormancy, and the premature break of an IndusInd Bank FD to shift funds to IDFC. A purported 14% compensatory interest was allegedly never offered by the bank; the difference was paid via demand drafts from siphoned money, investigators claim.
When contacted, Shayin said: “no comments”.
One-Day Deal
Ram Kumar Singh, then Panchkula commissioner, is alleged to have received several crores in hawala tranches, some at his Chandigarh residence, for facilitating municipal fund placements with IDFC. The entire Rs 80-crore FD process was pushed through in a single day, the CBI says.
Crores In Cash, Gold Via Middleman
Vineet Garg, then HSPCB chairman, allegedly supervised the conspiracy, receiving crores in cash through a middleman and gold worth lakhs, as IDFC secured business it could not have won on merit, the agency claims.