The Central Bureau of Investigation (CBI) has arrested 4 people in connection with the alleged Rs 657-crore IDFC First Bank and AU Small Finance Bank scam. Investigators allege that the accused allowed their bank accounts to be used to transfer siphoned public funds, conceal their origins and convert the money into cash.
Gaurav Kansal of Bharat Distributors, Mohit Goyal of Chandigarh Mega Store and Bhagwati Agencies, Chartered Accountant Siddharath Narula, and Manoj were produced before the court on Saturday. The CBI Special Court in Haryana sent Kansal, Goyal and Narula to 2 days of CBI custody.
According to the CBI, money debited from Haryana government accounts, Chandigarh Renewal Energy and Science & Technology Promotion Society (CREST), and Chandigarh Smart City Ltd was initially transferred to shell companies. These included RS Traders, CAPCO Fintech Services, Swastik Desh Projects and SRR Planning Gurus Pvt Ltd. Investigators allege that Ribhav Rishi, identified as the alleged mastermind, decided how much money would be routed through these entities.
The funds were then moved through multiple accounts before being converted into cash to hide the transaction trail.
Between December 2023 and December 2025, Kansal and Bharat Distributors allegedly received Rs 26.79 crore through 82 transactions from RS Traders, CAPCO Fintech Services and Swastik Desh Projects. They reportedly sent back Rs 25.18 crore through 66 transactions. According to the CBI, cash linked to these transfers was collected from Kansal’s residence, shop and the office of RG Infra in Sector 82, Mohali. Cash was also allegedly handed to him on Ribhav Rishi’s instructions.
Investigators further allege that Kansal brought jewellers into the network. Between April 2024 and October 2025, Malik Jewellers, KLG Jewels, KLG Infra, KLG and Company, Sunder Jewellers, and Bansal Traders, owned by Kansal’s brother-in-law Jatin Bansal, allegedly received Rs 93.99 crore from shell entities but returned only Rs 5.81 crore.
Malik Jewellers reportedly received Rs 58.47 crore through 80 transactions. 3 KLG firms received Rs 28.55 crore from CAPCO Fintech between August 2024 and November 2024, often on the same day the company received government funds.
Sunder Jewellers received Rs 3.16 crore, while Hare Krishna Industries in Karnal, owned by Kansal’s cousin, received Rs 2 crore from CAPCO Fintech. The CBI claims this amount was returned to Kansal’s firm within 3 days.
Kansal is also accused of threatening a witness and pressuring him to change his statement to the Enforcement Directorate and avoid the CBI.
Separately, shell firms allegedly transferred Rs 59.50 crore to Goyal and his businesses, Chandigarh Mega Store and Bhagwati Agencies, through 112 transactions between October 2023 and January 2026. Only Rs 14.05 crore was reportedly returned through banking channels. The CBI alleges that the remaining Rs 45.45 crore was returned to the accused in cash. Chandigarh Mega Store also received Rs 1.75 crore from CREST’s account.
Investigators claim Goyal frequently received public funds on the same days they were withdrawn from government accounts. He allegedly arranged Rs 2 crore in cash through hawala in Delhi for the son of Haryana IAS officer RK Singh. The money reportedly originated from funds siphoned off from the Municipal Council, Kalka, and reached the officer within 48 hours.
Goyal is also accused of signing blank cheques when instructed and transferring more than Rs 54 crore to various individuals and jewellers at Ribhav Rishi’s direction. Narula allegedly arranged the opening of 3 bank accounts that received Rs 1.57 crore.
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