Section 17A of the PC Act mandates prior government approval before initiating any inquiry or investigation against a public servant under the Act. The alleged involvement of the IAS officers is linked to the opening of bank accounts in violation of the Finance Department’s guidelines. Sources indicated that the Haryana Government was likely to grant approval for the probe.

The scam came to light after government funds from multiple departments were allegedly siphoned off by bank officials and private individuals in collusion with government officers. Following the revelations, two IAS officers were suspended and four transferred in connection with the IDFC First Bank, AU Small Finance Bank and Kotak Mahindra Bank scams.

The CBI registered an FIR in the case on April 8 after taking over the probe from the State Vigilance and Anti-Corruption Bureau, which had earlier registered a case on February 23.