A Panchkula court on Friday sent suspended IAS officer Ram Kumar Singh to three-day CBI custody in the Rs 657-crore bank scam. The CBI said he had admitted that the signatures on the cheques issued to the co-accused were his own.
He was arrested on Thursday following a search at his residences in Karnal and Panchkula.
The scam involved officials of IDFC First Bank and AU Small Finance Bank, who allegedly colluded with government officials, including IAS officers, to siphon off funds from the bank accounts of eight Haryana government departments and two Chandigarh Administration departments. While the CBI has put the quantum of loss at Rs 657 crore, the ED, which is also investigating the scam, claims a loss of Rs 645 crore.
The CBI submitted before the court on Friday that during the time the scam took place, Singh held the charge as Commissioner, Municipal Corporation, Panchkula, and Commissioner, Municipal Council, Kalka.
“In furtherance of a criminal conspiracy with the co-accused, including Ribhav Rishi, Abhay Kumar and Naresh Kumar, he accorded approval for opening a new bank account at IDFC First Bank, Sector 32, Chandigarh, and for the transfer of funds exceeding Rs 100 crore thereto from the account of the MC, Panchkula, in clear violation of the extant guidelines of the Finance Department,” the CBI said.
It added, “… he issued cheques to the co-accused with full knowledge that the same would not be used for the creation of fixed deposits but for misappropriation, and has admitted that the signatures on the said cheques are his own.”
Even after discrepancies in the dates of the creation of fixed deposits and the corresponding debit entries were brought to his notice by his office, Singh proceeded to issue further cheques to the сo-accused instead of probing the matter. Of these, one cheque was used for further misappropriation and three cheques bearing his signatures remain missing, said the CBI.
The CBI told the court that digital evidence recovered during the investigation further disclosed that he received illegal gratification as a quid pro quo for his participation in the conspiracy.
The CBI further claimed that Singh had exchanged incriminating communication with the co-accused through his mobile phone. However, upon seizure of his phone, the original communication was found missing or deleted, and Singh failed to furnish any explanation or provide assistance in retrieving the same, disclosing a deliberate attempt to suppress, destroy or conceal material evidence, the CBI added.
Seeking his three-day custody, the CBI said Singh, being a senior IAS officer, wielded considerable influence over persons connected with the conspiracy, including subordinate official and material witnesses, and there existed a real and credible apprehension that, if not taken into custody, he would use his position and influence to win over, intimidate or otherwise improperly influence such witnesses.
Singh had remained non-cooperative, and withheld material information, said the CBI.
The CBI had arrested a former superintendent of the Development and Panchayats Department, Prince Sharma, on Thursday. He was also produced before the court on Friday.
According to the CBI, in collusion with officials of IDFC First Bank and Haryana government officials, Sharma had his mobile number registered on the account-opening forms of the MC, Panchkula, and the Development and Panchayats Department, pertaining to the Mukhyamantri Gramin Awas Yojana (MMGAY) 2.0. He was neither part of the team handling the MMGAY work in the Panchayats Department nor was he posted in the MC, Panchkula.
“The insertion of his number was part of the conspiracy to keep the department in the dark about the fraudulent transactions and the confirmation calls relating thereto. He was fully aware of the fraudulent transactions taking place in the said accounts, attended the confirmation calls relating to those transactions with his co-conspirators, and, on multiple occasions, handed over his SIM card to other members of the conspiracy,” said the CBI.
The agency alleged that Sharma deleted chats with the co-accused, creating a real risk of further manipulation and tampering with evidence.
Seeking the custody of both Singh and Sharma, the CBI said, “The proceeds of crime, including the properties acquired and the gold purchased out of the siphoned funds, are required to be identified and recovered, for which the disclosure of the accused during custodial interrogation is indispensable.”
It added that the role of senior government functionaries was yet to be ascertained and the money trail was being traced.
