CHANDIGARH – In a widening crackdown on one of the largest financial frauds in Haryana’s history, the state government has dismissed Amit Diwan, Director of Finance for the Haryana Power Generation Corporation Limited (HPGCL). Diwan is the fourth high-ranking official to face dismissal or suspension in connection with the ₹590 crore IDFC First Bank scam, a sophisticated embezzlement scheme that has rocked the state’s bureaucracy.
The Paper Trail: Unauthorized Accounts and Shell Companies
The investigation, spearheaded by the Haryana Anti-Corruption Bureau (ACB), centres on the unauthorized diversion of government funds into private bank accounts.
On February 27, 2024, an account titled “HPGCL Dry Fly Ash Fund” was opened at the Sector-32 branch of IDFC First Bank in Chandigarh. Despite the bank not being on the state’s approved list for government deposits, Diwan allegedly authorized the transfer of ₹50 crore into this account.
Modus Operandi of the Fraud
According to forensic audits and ACB filings, the scam operated through a “layering” process designed to hide the money trail:
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The Initial Transfer: Government funds meant for Fixed Deposits (FDs) were diverted into unauthorized accounts.
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Shell Entities: The money was then moved to entities like Swastik Desh Projects.
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Asset Conversion: Investigators found that the diverted funds were used to purchase luxury vehicles and gold through local jewellers to “clean” the cash.
The Fall of Amit Diwan
Diwan, who previously served as the Chief Financial Officer (CFO) of Uttar Haryana Bijli Vitran Nigam (UHBVN), is accused of criminal conspiracy and abuse of official position.
The ACB arrested Diwan on March 18, 2026, after discovering evidence of “illegal gratification.” Prosecutors allege that Diwan received substantial kickbacks from bank officials and private middlemen in exchange for bypassing strict financial regulations. His dismissal follows a trend of “zero tolerance” toward corruption signalled by the Chief Minister’s office.
A Systematic Purge: Who Else Has Been Hit?
The IDFC scam has triggered a domino effect within the Haryana administration. Diwan joins a growing list of officials caught in the crosshairs:
| Official Name | Designation | Status |
| Amit Diwan | Director (Finance), HPGCL | Dismissed & Arrested |
| Naresh Bhuwani | Superintendent, Development & Panchayat | Dismissed |
| Ram Kumar Singh | IAS Officer | Suspended |
| Pardeep Kumar | IAS Officer | Suspended |
Additionally, at least six bank employees, including former IDFC staffer Ribhav Rishi, remain in custody.
Government Response and Recovery
In a rare success for financial recovery, Chief Minister Nayab Singh Saini confirmed that the state’s swift intervention allowed for the retrieval of ₹556 crore within 24 hours of the fraud’s initial detection.
“We have blacklisted and de-empanelled both IDFC First Bank and AU Small Finance Bank from handling government accounts. No official, regardless of their rank, will be spared if found complicit in the theft of public money.” — Official Statement from the CM’s Office.
What’s Next?
The case has officially been recommended for a CBI probe to investigate the interstate links of the shell companies involved. Meanwhile, all government departments have been ordered to migrate their holdings to nationalized banks to prevent further security breaches in the state’s financial ecosystem.
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