CBI Misses Deadline, ₹504-Crore Fraud Accused Granted Default Bail by Panchkula Court
In a pivotal turn of events in the ₹504-crore banking fraud case, a Panchkula court has granted default bail to Rajesh Sangwan, a former finance officer of the Haryana State Agricultural Marketing Board (HSAMB). This decision arises after the Central Bureau of Investigation (CBI) failed to file a chargesheet within the legally mandated timeframe. The ruling underscores the critical importance of procedural safeguards in criminal investigations, particularly in cases involving substantial financial misconduct.
Background of the Allegations
The fraud case is linked to banking transactions involving IDFC First Bank and AU Small Finance Bank. Allegations suggest a network of bank employees, government officials, and private individuals orchestrated fraudulent transactions, leading to significant financial losses. The estimated scale of the fraud, pegged at ₹504 crore, has made this investigation one of the most scrutinized economic offenses in Haryana.
Rajesh Sangwan, 51, previously served as the Controller of Finance and Accounts at HSAMB. Following his arrest on March 14, 2026, he was presented before a magistrate the next day and subsequently remained in judicial custody as investigations unfolded. The case was initially registered by state vigilance and anti-corruption authorities on February 23, 2026, before being transferred to the CBI for further investigation.
Chargesheet Deadline at Centre of Case
Sangwan’s legal team argued that the CBI did not file a final report against him within the statutory period, which began with his first remand on March 15. According to their calculations, the deadline for filing the chargesheet expired on June 12. They contended that the lack of a chargesheet specifically naming Sangwan entitled him to default bail under criminal procedure provisions.
During the court proceedings, the CBI maintained that a final report had been submitted on May 21 against multiple accused individuals and two private companies. They also indicated that a supplementary report was filed on June 12 against additional accused persons, asserting that the investigation concerning Sangwan was ongoing.
Court Clarifies Statutory Right
Upon reviewing the records, the court determined that neither the original final report nor the supplementary report included formal allegations against Sangwan. The court emphasized that the statutory period for filing a chargesheet is calculated from the date of the first remand and does not reset merely because a different investigative agency takes over the case.
The court’s ruling highlighted that the right to default bail is a statutory entitlement that arises when procedural requirements are not met within the specified timeline. Once this right is established and exercised before a chargesheet is filed, it cannot be negated by subsequent developments in the investigation.
Implications for Ongoing Investigations
While the judge acknowledged that the seriousness of the allegations and the scale of the alleged fraud could be relevant in regular bail applications, these factors do not override the legislative mandates concerning default bail. The court’s decision reinforces the necessity for investigative agencies to adhere to procedural timelines, ensuring that individuals’ rights are not compromised.
The broader investigation into the ₹504-crore fraud remains active. Authorities are scrutinizing financial transactions, banking records, and the involvement of multiple accused individuals. Investigators are delving into the mechanisms that facilitated the alleged financial irregularities and assessing whether additional parties benefited from the fraudulent transactions.
Although Sangwan has been granted default bail, the court’s ruling does not equate to an acquittal or a judgment on the merits of the allegations. The investigation continues, and further legal proceedings are anticipated as agencies strive to finalize the probe and ascertain individual accountability in this significant financial crime case.
For more information on the ongoing developments in this case, refer to the original reporting source: the420.in.
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