NEW DELHI: The Enforcement Directorate has arrested a partner of Sawan Jewellers in connection with an alleged financial fraud of 645 crore rupees involving IDFC First Bank, securing four days of agency custody for interrogation. The probe centers on the suspected diversion of public funds deposited by the Haryana government and the Chandigarh Municipal Corporation that were originally meant to be placed in fixed deposits. Investigators are currently tracing the destination of the diverted money, mapping the network of individuals and corporate entities involved, and examining the multi-layered channels used to siphon the capital away from state accounts.
Suspected Fund Diversion Through Fictitious Gold Trades
According to investigators, the operation relied on multiple layers of banking transactions designed to mask the unauthorized movement of state money. Funds pulled from government deposits were allegedly routed through diverse accounts and corporate entities to obscure the trail. A key focus of the inquiry is whether high-value gold purchases recorded by Sawan Jewellers were genuine commercial transactions or fabricated paper trails created to legitimize the movement of illicit proceeds.
To uncover the mechanics of the transfer network, the central agency conducted extensive search operations across locations linked to Sawan Jewellers, former bank staff, suspected shell firms, and real estate businesses. The scrutiny has expanded to cover every commercial entity and intermediary whose accounts received the funds. Officials are reviewing financial documentation and bank ledgers to establish corporate links, determine transaction authorization levels, and identify the ultimate recipients of the diverted public money.
Probe Expands as Estimated Amount Escalates to 645 Crore Rupees
The scale of the suspected embezzlement has expanded as the investigation progressed, rising from an initial assessment of 597 crore rupees to 645 crore rupees. Agency officials are actively reconciling transaction records to pinpoint the exact origin of the withdrawals, the specific routing paths across banks, and the identities of those who gained financially. Investigators are also examining internal approval records to determine the administrative level at which government funds were cleared for transfer.
In tracing the full movement of money, officials are scrutinizing corporate filings, bank transfer statements, and gold purchase invoices to detect discrepancies between declared business operations and actual cash flows. The agency aims to establish direct links among intermediaries to establish whether the transfers were part of a synchronized scheme. Resolving whether the reported gold sales represented actual trades or deceptive balance-sheet entries remains pivotal to establishing the final money trail.
Four-Day Custody to Trace Intermediaries and Final Beneficiaries
During the four-day custodial remand, investigators plan to interrogate the arrested partner regarding the operational role of Sawan Jewellers in the financial network. Questioning will focus on identifying the specific corporate entities, bank accounts, and third-party intermediaries used to facilitate the illicit movement of government reserves.
The investigation remains active, with the legal allegations against the partner subject to judicial verification. Moving forward, the Enforcement Directorate plans to cross-examine banking records, verify documentation from related entities, and map the remaining conduits through which public assets were dispersed. Agency officials noted that upcoming actions will hinge on the findings extracted during custodial questioning as they work toward identifying the full roster of beneficiaries behind the diverted funds.
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