The Enforcement Directorate (ED) carried out searches at 19 locations across Chandigarh, Mohali, Panchkula, Gurgaon, and Bangalore related to the IDFC First Bank case involving the misappropriation of Rs 597 crore in public funds. During the operation, over 90 bank accounts were frozen, and incriminating digital and documentary evidence was seized. The ED stated that the embezzled money belonged to various government entities, including the Haryana Government and Chandigarh Municipal Corporation.
The ED’s investigation, under the Prevention of Money Laundering Act, 2002, was initiated based on an FIR filed by the State Vigilance and Anti-Corruption Bureau, Panchkula, in February 2026. The case pertained to discrepancies in the bank accounts of the Development and Panchayat Department, Haryana, with IDFC Bank and AU Small Finance Bank. The funds meant for a fixed deposit were diverted without authorization by the accused individuals, as per the ED.
The search operations targeted former bank employees, their families, and shell entities like Swastik Desh Projects, Capco Fintech Services, Maa Vaibhav Laxmi Interiors, SRR Planning Gurus Private Limited, Sawan Jewellers, and real estate developers such as Vikram Wadhwa. Investigations revealed that the embezzled public funds were funneled through multiple shell entities by the accused individuals.
According to the ED, the accused’s scheme involved setting up a shell entity, Swastik Desh Projects, and transferring government funds to this account initially. Subsequently, a significant portion of the funds was channeled through jewellers’ bank accounts to create a false impression of gold purchases through fake invoices. The fraudulent activities, aided by ex-bank employees, persisted for about a year, leading to the diversion of bank funds, the ED disclosed.
