New Delhi:
The Enforcement Directorate (ED) has registered a money-laundering case and launched extensive search operations at 19 locations across Chandigarh, Haryana, and Punjab in connection with the alleged ₹590-crore fraud linked to IDFC First Bank’s Chandigarh branch. The searches were carried out by the agency’s Chandigarh Zonal Office as part of its ongoing investigation to trace the money trail and identify the individuals and entities involved in the financial irregularities.
According to officials familiar with the probe, the fraud involves embezzlement of funds from bank accounts belonging to various departments of the Haryana government that were maintained at the private lender’s Chandigarh branch. Investigators suspect that large sums meant to remain deposited in government accounts were diverted through unauthorized transactions and subsequently routed through multiple intermediaries and business entities.
ED Raids Across Multiple Locations
The ED’s searches were conducted at 19 premises located in Chandigarh, Gurugram (Haryana), and Mohali (Punjab). These locations are linked to individuals, business entities, and intermediaries suspected of facilitating the diversion and laundering of funds. Authorities believe that several of these entities allegedly helped create “accommodation entries” and financial layers to hide the origin of the illicit funds and conceal the proceeds of crime.
Officials stated that the raids are aimed at recovering key evidence, financial records, digital devices, and documents that could help establish how the fraudulent transactions were executed and who ultimately benefited from them.
Fraud Linked to Haryana Government Accounts
The case came to light earlier this year during a reconciliation process when a Haryana government department sought to close its bank account and transfer the funds to another bank. During verification, authorities discovered a significant mismatch between the expected balance and the funds actually present in the account.
Further scrutiny revealed that approximately ₹590 crore had allegedly been siphoned off through suspicious transactions, prompting an internal review and a police complaint. Preliminary findings suggested that unauthorised debit instructions, forged cheques, and manipulated banking documents may have been used to move money out of the accounts.
Alleged Involvement of Bank Officials and Private Entities
Investigators suspect that the fraud may have been carried out through collusion between certain bank employees and external individuals or companies. Authorities believe that forged financial instruments and manipulated documentation were used to authorize transfers that should never have taken place.
Earlier investigations by state authorities led to the arrest of several individuals, including former bank officials and private company representatives, for their alleged role in the conspiracy. Among those arrested were former branch head Ribhav Rishi and relationship manager Abhay Kumar, along with Swati Singla and Abhishek Singla, who are linked to a private firm suspected of receiving a large portion of the diverted funds.
Investigators have also identified hundreds of suspicious transactions across numerous accounts, indicating that the fraud may have been carried out over a period of time through a network of accounts and shell entities.
Recovery Efforts and Ongoing Investigation
Following the discovery of the fraud, the Haryana government initiated a high-level probe and directed all departments to review their banking arrangements. Reports indicate that a significant portion of the diverted funds has already been recovered and credited back to government accounts, though investigations into the remaining amount continue.
Meanwhile, the ED’s money-laundering investigation aims to identify the complete financial trail, beneficiaries of the funds, and possible involvement of additional individuals or corporate entities. Officials have indicated that further searches, arrests, and asset attachments may follow as the probe progresses.
The case is being closely watched due to the scale of the alleged fraud and its connection with public funds belonging to government departments, raising serious concerns about financial oversight and internal banking controls.
