In a major financial fraud case linked to IDFC First Bank, Haryana authorities have arrested jeweller Rajan Katodia, owner of Sawan Jewellers. This marks the 12th arrest in the ongoing investigation. Officials stated that companies and firms connected to the accused transferred more than ₹250 crore to Katodia’s firm during the alleged scam.
IDFC First Bank had earlier revealed that a ₹590 crore fraud had taken place at its Chandigarh branch, involving certain bank employees and other individuals who allegedly manipulated government accounts. Preliminary investigations indicate that Katodia provided cash conversion services to the prime accused and received substantial commission for facilitating these transactions.
Katodia’s Key Role in the Conspiracy
Investigators said funds were routed to Sawan Jewellers from entities associated with accused individuals including Ribhav Rishi, Abhay Kumar, Abhishek Singla, and Swati Singla. Records suggest that Katodia allegedly entered false gold sales transactions in the accounts of these firms. Authorities noted that he played a pivotal role in planning the conspiracy and actively participated in executing the fraudulent scheme.
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Officials added that Katodia and the other accused allegedly transferred funds from government accounts through illegal channels into associated companies and ultimately into Katodia’s accounts. The investigation also revealed that Sawan Jewellers received funds from firms such as Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd, and Swastik Desh Project.
Previous Arrests and Investigation Progress
Earlier, 11 other individuals had already been arrested in connection with the case, including six bank employees, four private individuals, and one government official. With Katodia’s arrest, the investigation has intensified, and authorities are seeking his custody for further questioning at the Panchkula court.
Investigators said Katodia’s role was critical in managing the cash conversion and routing of funds, enabling the accused to transfer large sums internationally with minimal detection. The cyber and financial investigation teams are now tracing the entire network to identify other firms and individuals involved in the alleged scheme.
Warnings and Future Probe
Sources close to the probe indicated that Katodia’s involvement with both bank employees and private individuals was instrumental in executing the conspiracy. Preliminary findings reveal that falsified gold sale entries and cash transactions were deliberately recorded to obscure the flow of funds, complicating audit and investigation processes.
Authorities confirmed that legal proceedings are moving swiftly, with cases being registered under relevant sections against all arrested individuals. The ongoing probe may uncover additional details, potentially exposing the full extent of the financial conspiracy.
Officials also warned that investigations will continue into linked companies and accounts, and all culprits will face strict action under applicable laws. The case highlights vulnerabilities in banking oversight and the importance of monitoring high-value transactions to prevent similar large-scale frauds.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
