ED raids 19 locations in Rs 597 crore IDFC First Bank fraud; over 90 bank accounts frozen
Mar 13, 2026
Synopsis
The Directorate of Enforcement has searched 19 locations in a Rs 597-crore scam. Public funds meant for fixed deposits were allegedly siphoned off. The investigation involves former bank employees and shell entities. Proceeds were routed through jewellers and real estate developers. Over 90 bank accounts were frozen during the searches.
The Directorate of Enforcement (ED) on Wednesday conducted search operations at 19 locations across Chandigarh, Mohali, Panchkula, Gurgaon and Bengaluru in connection with an alleged Rs 597-crore scam involving the embezzlement of public funds linked to government accounts maintained with IDFC First Bank.
The searches, carried out by the ED’s Chandigarh Zonal Office on March 12, covered premises linked to former bank employees Ribhav Rishi and Abhay Kumar, their family members, and several beneficiary shell entities including M/s Swastik Desh Projects, M/s Capco Fintech Services, M/s Maa Vaibhav Laxmi Interiors and M/s SRR Planning Gurus Private Limited. Premises of jewellers such as Sawan Jewellers and real estate developer Vikram Wadhwa and his business entities were also searched.
According to the agency, the scam involved the diversion of government funds worth about Rs 597 crore belonging to the Haryana government, the Chandigarh Municipal Corporation and other government accounts. The funds were meant to be placed as fixed deposits with the bank but were allegedly siphoned off by the accused without authorisation.
The ED said it initiated its investigation under the Prevention of Money Laundering Act, 2002, based on a FIR registered by the State Vigilance and Anti-Corruption Bureau in Panchkula in February this year over a mismatch of balances in bank accounts of the Development and Panchayat Department of Haryana held with IDFC First Bank and AU Small Finance Bank.
Searches revealed that the embezzled funds were routed and layered through multiple shell entities. Investigators said the alleged modus operandi involved the incorporation of a shell firm, Swastik Desh Projects Pvt Ltd, through which large sums of government money were initially diverted. The partners of the entity are Swati Singla and Abhishek Singla.
The ED said that most of the funds were later channelled through bank accounts of jewellers to create the appearance of gold purchases through bogus billing. According to investigators, the fraud was carried out over roughly the past year with the help of former bank employees.
Ribhav Rishi, a former employee of IDFC First Bank who resigned in June 2025, allegedly used several shell companies to siphon off the funds. The agency said some of the proceeds of crime were transferred to bank accounts belonging to Rishi and his wife Divya Arora.
The ED also alleged that a significant amount of money was siphoned off by Vikram Wadhwa, a hotelier and real estate developer with projects in Mohali. Wadhwa allegedly received proceeds of crime directly in his bank accounts before transferring them to real estate firms including Prisma Residency LLP, Kinspire Realty LLP and Martell Buildwell LLP.
Searches were carried out at these entities and documents related to real estate investments were seized. Investigators said Wadhwa had also used jewellers such as Sawan Jewellers, Capco Fintech Services and Klaita Jewellers, along with shell firms including Swastik Desh Projects, to siphon off the funds.
Wadhwa could not be located during the search operations and has been absconding since the alleged fraud came to light, the agency said.
Investigations further revealed that substantial funds routed through an entity named Chandigarh Mega Store were also layered and siphoned off. The premises of one of its partners, Mohit Goyal, were searched and evidence linked to the diversion of funds was recovered.
Searches were also conducted at entities including M/s Maa Vaibhav Laxmi Interiors and M/s SRR Planning Gurus Private Limited. According to the ED, these firms had received funds directly from government accounts and subsequently routed them through other shell entities.
During the searches, the agency said more than 90 bank accounts were frozen and incriminating digital and documentary evidence was seized.
Further investigation in the case is underway.
[The Economic Times]
