BankFraud – ED Conducts Raids Across Five Cities in ₹597 Crore Embezzlement Case
BankFraud – Authorities from the Enforcement Directorate carried out extensive search operations across several cities as part of an investigation into a large financial fraud involving public funds estimated at ₹597 crore. Officials confirmed on Friday that raids were conducted at 19 locations in Chandigarh, Mohali, Panchkula, Gurugram and Bengaluru in connection with the case linked to IDFC First Bank.
Raids conducted at multiple locations
According to the Enforcement Directorate, the searches targeted premises associated with former bank employees, business associates and several companies suspected of involvement in the financial irregularities. During the operation, investigators froze more than 90 bank accounts and seized a large quantity of digital records and physical documents believed to contain crucial evidence.
Officials said the investigation focuses on the alleged diversion of funds from accounts belonging to the Haryana government, the Chandigarh Municipal Corporation and other public sector bodies.
Investigation triggered by vigilance complaint
The case came to light following a complaint filed earlier this year by the State Vigilance and Anti-Corruption Bureau in Panchkula. The agency had registered a First Information Report in February 2026 after identifying discrepancies in the balances of bank accounts linked to the Development and Panchayat Department of Haryana.
These accounts were reportedly maintained with IDFC First Bank and AU Small Finance Bank. According to investigators, the funds were intended to remain in fixed deposit accounts, but were allegedly transferred elsewhere without official approval.
Based on this complaint, the Enforcement Directorate began its probe under provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Former bank employees under scrutiny
Officials stated that the alleged scheme involved the participation of former bank employees, including Ribhav Rishi and Abhay Kumar, along with their associates and relatives. Their properties were among those searched during the investigation.
Authorities believe that the accused individuals created a network of shell companies to divert government funds. One such entity identified during the probe was Swastik Desh Projects, which investigators say played a key role in the initial movement of the money.
The company is reportedly associated with partners Swati Singla and Abhishek Singla.
Complex network of shell companies identified
Investigators say that once the funds were transferred to the shell company, the money was moved through several financial channels in an attempt to conceal its origin. In some cases, transactions were routed through jewellery businesses using fabricated invoices to create the appearance of legitimate gold purchases.
Officials described this layered movement of funds as a deliberate effort to disguise the illegal diversion of government money.
Role of real estate investments under examination
The investigation has also uncovered links to the real estate sector. Authorities said that a portion of the diverted funds allegedly reached the accounts of Mohali-based hotelier and property developer Vikram Wadhwa.
According to investigators, the funds were later transferred to companies associated with real estate projects, including Prisma Residency LLP, Kinspire Realty LLP and Martell Buildwell LLP. Documents related to property investments connected to these entities were recovered during the search operations.
Officials stated that Wadhwa could not be located during the raids and is currently believed to be absconding since the financial irregularities surfaced.
Other entities linked to the financial trail
Investigators have also examined the role of several other firms suspected of participating in the movement of funds. These include Capco Fintech Services, Maa Vaibhav Laxmi Interiors and SRR Planning Gurus Private Limited.
According to the Enforcement Directorate, these businesses allegedly received transfers directly or indirectly connected to the diverted government accounts before routing the funds further to other shell entities.
Search operations were also conducted in connection with a company named Chandigarh Mega Store. Authorities confirmed that one of its partners, Mohit Goyal, was among those questioned during the investigation. Evidence linked to financial transactions has been recovered from the premises.
Investigation continues
Officials say the alleged fraud appears to have been carried out over roughly the past year, with investigators continuing to examine financial records and digital evidence collected during the raids. The agency is now analysing the seized documents to determine the full extent of the financial trail and identify additional individuals or organisations involved.
Further legal action will depend on the findings of the ongoing investigation under the money laundering law.