Investigators are uncovering new details in the ₹597 crore banking fraud linked to IDFC First Bank, where government funds from multiple Haryana state departments were allegedly siphoned off through a network of shell companies, real estate entities, and businesses.
The fraud centres on IDFC First Bank’s Sector 32 branch in Chandigarh, where government funds were supposed to be parked as fixed deposits (FDs). Instead, investigators say the money was diverted through several accounts and routed into private ventures.
Jeweller arrested in money trail
The Haryana State Vigilance and Anti-Corruption Bureau (ACB) arrested Rajan Katodia, owner of Sawan Jewellers, over the weekend. His arrest brings the total number of accused arrested in the case to 12.
According to investigators, more than ₹250 crore was transferred to Katodia’s firm from companies linked to the main accused.
“The accused falsely recorded the sale of gold items to these firms/companies in their books,” the ACB said in a statement. Authorities allege Katodia played a key role in the conspiracy from the early stages of the fraud and received commissions for facilitating the transactions.
Funds were routed to Sawan Jewellers through entities including Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd, and Swastik Desh Project, which investigators have identified as shell companies used to layer diverted government funds.
How the fraud was carried out
The case involves funds belonging to at least 8 Haryana government departments, including the panchayats department and the pollution control board.
Instead of being placed in fixed deposits, the money was allegedly diverted through 12 bank accounts, including 10 accounts at IDFC First Bank and 2 accounts at AU Small Finance Bank.
Investigators from the ACB and the Enforcement Directorate (ED) say former bank employees Ribhav Rishi and Abhay Kumar played central roles in the scheme.
Rishi, who resigned from the bank in June 2025, allegedly used his access to government accounts to divert funds into shell companies such as Swastik Desh Projects Pvt Ltd, whose partners are Swati Singla and Abhishek Singla, as well as entities including RS Traders and Capco Fintech Services.
“The modus operandi involves the incorporation of a shell entity, Swastik Desh Projects Pvt Ltd, and huge government funds were diverted to this account initially,” the ED said.
Role of real estate developer
Another major breakthrough in the investigation came with the arrest of Vikram Wadhwa, a 52-year-old Chandigarh-based hotelier and real estate developer who had been evading authorities since the case surfaced on February 22.
Wadhwa was arrested at a hideout in Kharar, Mohali, and placed under 5-day police remand to trace a financial trail involving more than 2,400 transactions.
In his statement to investigators, Wadhwa claimed that Ribhav Rishi proposed routing government funds through companies he controlled, assuring that “reverse entries could be made into the government accounts whenever required.”
He said the arrangement began around 2023–24, with funds flowing into his real estate projects in Chandigarh, Mohali, and Kharar through entities such as Prisma Residency LLP, Kinspire Realty LLP, and Martell Buildwell LLP.
Status of the investigation
So far, the Haryana ACB has arrested 12 individuals, including 6 bank employees, 4 private individuals, 1 government official, and the jeweller. Of these, 11 accused are currently in judicial custody.
Investigators have conducted raids at 16 locations, seizing more than 25 electronic devices including phones and laptops, along with 6 luxury vehicles — 3 Toyota Fortuners, 2 Innovas, and 1 Mercedes. Authorities have also identified 10 properties suspected to have been purchased using proceeds of the fraud.
Separately, the Enforcement Directorate carried out searches at 19 locations across Chandigarh, Panchkula, Gurugram, Mohali, and Bengaluru on March 12, freezing more than 100 bank accounts.
The probe is being overseen by a Special Investigation Team (SIT) led by senior IPS officer Ganga Ram Punia. Investigators suspect that some government officials may have acted as co-conspirators in enabling the diversion of funds.
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