The CBI, while seeking custodial interrogation of the two accused, told the court that the probe had uncovered multiple financial transactions and documentary evidence requiring further examination.
Image: IANS
A special CBI court in Panchkula on Friday granted three days police remand of suspended Haryana IAS officer Ram Kumar Singh and former Panchayat Department Superintendent Prince Sharma in connection with the alleged ₹79.46-crore Panchkula Municipal Corporation fund misappropriation case.
The Central Bureau of Investigation (CBI), while seeking custodial interrogation of the two accused, told the court that the probe had uncovered multiple financial transactions and documentary evidence requiring further examination. The agency argued that both accused needed to be questioned in custody to establish the money trail and identify other individuals allegedly linked to the case.
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According to investigators, Singh, who had served as Commissioner of the Panchkula Municipal Corporation, is suspected of approving the transfer of more than ₹100 crore in government funds to a bank account allegedly opened in violation of prescribed financial procedures. The agency claimed that the transactions were carried out as part of a wider conspiracy involving several co-accused and financial intermediaries.
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CBI sources said the investigation gathered momentum following searches and questioning conducted at multiple locations. During the inquiry, investigators reportedly raised questions regarding the transfer of approximately ₹2.5 crore to a bank account linked to Singh’s son in Dubai, the purchase of nearly 15 acres of agricultural land in Karnal, and documents allegedly connected to benami assets. Officials said satisfactory explanations and supporting records were yet to be furnished regarding these transactions.
The agency further informed the court that digital evidence collected during the investigation suggested possible financial benefits accruing to certain individuals allegedly involved in the conspiracy. Investigators also claimed that several signed cheques linked to the movement of public funds remain untraced and may hold crucial evidence in the case.
Prince Sharma has also been accused of playing a role in facilitating banking-related procedures connected to the alleged diversion of government funds. According to the CBI, his mobile number was allegedly linked to documentation associated with government accounts despite him not being directly responsible for those accounts. The agency contended that his custodial interrogation was necessary to ascertain the extent of his involvement and identify other beneficiaries.
Court proceedings also referred to property declarations previously submitted by Singh to the Haryana government. In those disclosures, Singh reported personal assets worth around ₹3.2 crore, while stating that his wife independently owns and operates several businesses, including a petrol pump, a microbrewery, restaurant ventures, rental projects and agricultural properties. Singh has maintained that all assets were duly declared through official channels and that his family members are independent taxpayers.
The alleged scam is part of a broader investigation into suspected irregularities involving government funds routed through accounts maintained with private banks. Investigators believe funds earmarked for public bodies were subsequently transferred through multiple entities, including shell companies, leading to substantial financial losses to the exchequer.
CBI officials alleged that several signed cheques were handed over on the pretext of creating fixed deposits, but the deposits were never made. Instead, the funds were allegedly diverted through fraudulent transactions. The agency has already arrested other accused, including a senior accounts official, and maintains that the investigation is continuing to uncover the full scope of the alleged conspiracy.
The CBI told the court that custodial interrogation was essential because crucial communication records and digital evidence are still being examined. The agency also argued that, given the senior positions previously held by some of the accused, there was a possibility of influence being exerted on witnesses or other individuals connected to the investigation.
Further investigation into the alleged fund diversion, the source of assets under scrutiny and the wider financial network linked to the case is underway.
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