Panchkula, Aug. 12 -- The special CBI court in Panchkula on Tuesday dismissed the bail application of Arun Sharma, 39, a former area head of IDFC First Bank and former regional manager (current accounts) of AU Small Finance Bank, in connection with the alleged Rs 550-crore fraud involving government funds in Haryana. Special judge (CBI), Haryana, Vijayant Sehgal, dismissed Sharma's bail application, observing that the allegations involved a large-scale economic offence and that further investigation in the case was pending. The court said no ground for granting bail was made out at this stage. The case pertains to an FIR registered by the CBI on April 8, 2026, under provisions of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita. The prosecution case originated from an inquiry into discrepancies in accounts maintained with IDFC First Bank and AU Small Finance Bank. The investigation allegedly revealed fraudulent transactions through which funds belonging to various Haryana government departments were siphoned off, with the alleged fraud amounting to approximately Rs 550 crore. According to the CBI, Sharma was posted as regional manager (current accounts), Chandigarh/Punjab, at AU Small Finance Bank from March 4, 2025, to March 10, 2026. Before that, he had served as area head at IDFC First Bank, Sector 8, Chandigarh, where he was senior to co-accused Ribhav Rishi, then a branch manager at the bank's Sector 32 branch. The prosecution alleged that Sharma facilitated Rishi's induction into AU Small Finance Bank, following which two Haryana government accounts were opened there. Fraudulent debit transactions in the accounts of the HPGCL Employees Pension Fund Trust and director panchayat allegedly caused a loss of Rs 24.52 crore to government departments. The CBI alleged that Sharma sent forged account statements of account of director panchayat MMGAY 2.0 to government officials to conceal fraudulent transactions and received around Rs 2 crore through different entities as quid pro quo....