In a major administrative crackdown following a high-profile corruption probe, the government Monday dismissed the chief financial officer of Haryana Power Generation Corporation Limited (HPGCL) from service in connection with the Rs 590-crore scam involving the alleged diversion of funds through IDFC First Bank and AU Small Finance Bank.The Haryana Government removed Amit Dewan, citing grave misconduct, corruption, and abuse of official authority in one of the state’s most significant recent financial scams.The action comes weeks after his arrest in connection with a Rs 590-crore scam involving the alleged diversion of government funds through IDFC First Bank and AU Small Finance Bank.In its dismissal order, the government emphasised that Dewan’s conduct amounted to “blatant corruption and gross misconduct, severely damaging the credibility of the state government and its power utilities”.Also Read | IDFC First Bank’s Rs 590-crore fraud: Why it highlights governance lapsesAuthorities also highlighted practical difficulties in conducting a fair departmental inquiry. Given his senior rank, there were concerns that subordinates might hesitate to testify freely, while there remained a significant risk that evidence would be tampered with or destroyed.Citing these exceptional circumstances, the HPGCL managing director invoked the provisions of Clause 7(A) of the UHBVNL Employees (Punishment & Appeal) Regulations, 2018, to dispense with a formal inquiry and a show-cause notice.“Dewan’s continuation in service would be detrimental to public interest, institutional discipline, and the integrity of ongoing investigations,” said the order.Dewan’s roleStory continues below this adDewan was arrested on March 18 by the State Vigilance and Anti-Corruption Bureau after investigators uncovered his alleged involvement in a large-scale financial conspiracy. At the time of his arrest, he was serving as the director (Finance) with the power utility.Following his arrest, Dewan was produced before a Panchkula court on March 19, which remanded him to police custody for further interrogation. The arrest followed a series of raids and financial investigations that reportedly uncovered suspicious fund flows, incriminating documents, and digital evidence linking him to the accused network.The ongoing probe by investigating agencies revealed that Dewan allegedly conspired with key accused individuals to siphon off government funds through accounts operated across multiple bank branches. These included IDFC First Bank’s Sector-32, Chandigarh branch, and AU Small Finance Bank branches in Ludhiana—later shifted to Sector-8, Panchkula—with critical transactions routed through Mohali.According to witness statements and interrogation findings, Dewan allegedly accepted substantial illegal gratification in exchange for facilitating or overlooking fraudulent transactions. Payments were allegedly made both directly and through intermediaries, including employees hired by a co-accused, Ribhav Rishi.Story continues below this adCall Detail Record (CDR) analysis further established that Dewan was in constant contact with the accused during the relevant period. One key transaction cited in official records alleges that he received Rs 50 lakh on January 6, 2026, as part of the payments.Authorities concluded that Dewan misused his official position to establish links with bank officials and external conspirators, compromising the financial interests of public institutions and eroding trust in governance systems.Previous suspensions and dismissalsSo far, the Haryana Government has suspended two IAS officers, Ram Kumar Singh and Pardeep Kumar, for their alleged role in the multi-crore scam. A Controller of Finance and Accounts, Rajesh Sangwan, was dismissed from service for his alleged role in this scam.More than 20 people, including bank officials, government officials, private individuals, businessmen, and real estate developers, have so far been arrested in the ongoing probe into the multi-crore financial scandal involving IDFC First Bank and AU Small Finance Bank.IDFC First Bank fraud caseStory continues below this adThe alleged scam is a large-scale financial fraud involving the diversion of around Rs 590 crore in Haryana Government-linked funds and over Rs 170 crore from Chandigarh Administration’s various departments, carried out through a coordinated network of public officials, bank employees, and private intermediaries.According to the investigation, the accused allegedly conspired to route funds through multiple accounts in IDFC First Bank and AU Small Finance Bank using shell entities, fake transactions, and layered transfers to obscure the money trail. The funds were reportedly siphoned from government-related accounts and then laundered through a network of beneficiaries.Investigators say the operation relied on abuse of official positions, forged financial approvals, and close coordination between bank insiders and external accused persons, with digital evidence and call records showing sustained communication among the conspirators during the period of the fraud.Given the magnitude and complexity of the scam, the Haryana Government transferred the investigation to the Central Bureau of Investigation (CBI). Officials stated that a Central probe was necessary due to the involvement of senior officials, interlinked banking transactions, and the scale of alleged fund diversion.Story continues below this adIn this regard, four FIRs registered, two each in Chandigarh and Haryana, are currently being investigated by CBI and the Enforcement Directorate.