Kumar, a 1991 batch Indian Administrative Service (IAS) officer of the Jharkhand cadre, and at present secretary, institutional finance, is on long leave.
'The squandered amount was out of the fund allotted for the (central government sponsored) National Rural Health Mission (NRHM),' the statement said.
The CBI conducted simultaneous searches at 14 places in Jharkhand and New Delhi, including the residences of the accused officials and private suppliers.
An FIR has been registered on the 'specific request' of the state government with the approval of the central government.