The directorate of enforcement (ED) has conducted search operations at 19 premises across multiple cities in connection with a major banking fraud involving the alleged embezzlement of around ₹597 crore belonging to government accounts.
The searches were carried out on 12 March 2026 by the agency’s Chandigarh zonal office at locations in Chandigarh, Mohali, Panchkula, Gurgaon and Bengaluru.
The action is part of an investigation into what officials described as the IDFC First Bank scam, where public funds belonging to government bodies were allegedly diverted through shell companies and other channels.
According to ED, the funds related to accounts of the Haryana government and the Chandigarh Municipal Corporation were supposed to be placed in fixed deposits with IDFC First Bank.
However, investigators allege that the accused persons diverted these funds without authorisation, causing a loss of around ₹597 crore to public accounts.
The searches covered former bank employees including Ribhav Rishi and Abhay Kumar, along with their family members and several business entities suspected of receiving the diverted funds.
ED says the probe was initiated under the provisions of the Prevention of Money Laundering Act, 2002 after a first information report (FIR) registered by the state vigilance and anti-corruption bureau at Panchkula in February 2026.
The FIR related to discrepancies in balances in the bank account of the development and panchayat department of Haryana maintained with IDFC First Bank and AU Small Finance Bank.
Investigators say the embezzled funds were routed and layered through multiple shell companies to conceal their origin.
The alleged modus operandi involved the creation of a shell entity, Swastik Desh Projects Pvt Ltd, where large amounts of government funds were first diverted. The firm’s partners have been identified as Swati Singla and Abhishek Singla.
From there, a significant portion of the funds was allegedly routed through accounts of jewellers to create the appearance of gold purchases through bogus billing.
ED says the fraud was carried out over roughly the past year with the assistance of former bank employees.
Officials alleged that Ribhav Rishi, a former employee of IDFC First Bank who resigned in June 2025, used several shell entities to siphon off funds. Some of the proceeds were also transferred to bank accounts belonging to Rishi and his associate Divya Arora.
Investigators have also named hotelier and real estate developer Vikram Wadhwa as a key beneficiary of the alleged fraud.
According to ED, Mr Wadhwa directly received proceeds of crime in his bank accounts and later transferred funds to real estate entities including Prisma Residency LLP, Kinspire Realty LLP, and Martell Buildwell LLP.
Documents related to real estate investments were seized during the searches.
Officials say Mr Wadhwa could not be located during the search operations and has since been absconding since the fraud came to light.
ED says funds were also routed through business entities, including Chandigarh Mega Store, whose partner, Mohit Goyal, was among those covered in the searches.
Investigators also conducted searches at other entities, including Maa Vaibhav Laxmi Interiors and SRR Planning Gurus Pvt Ltd, which allegedly received funds directly from government accounts and later layered them through additional shell entities.
During the search operations, ED froze more than 90 bank accounts linked to the suspected money laundering network.
Officials say several incriminating materials, including digital records and documentary evidence related to the diversion and layering of funds, were seized during the raids.
Further investigation in the case is underway, ED says.
