The Enforcement Directorate (ED) has informed a Special PMLA Court in Panchkula that nearly ₹203 crore diverted from government department accounts in the alleged IDFC First Bank fraud case was transferred to a shell company and later routed to jewellers and other third parties in exchange for cash. The agency made the submissions while seeking custody of key accused in the ongoing money laundering investigation.
According to the ED, former IDFC First Bank branch manager Ribhav Rishi and former relationship manager Abhay Kumar played central roles in the alleged laundering of public funds linked to Haryana government and Chandigarh Administration accounts. Both were arrested on May 11 under provisions of the Prevention of Money Laundering Act (PMLA).
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ED Alleges Diversion of ₹645 Crore in Public Funds
In court filings, the ED stated that the case involves proceeds of crime amounting to nearly ₹645 crore. Investigators alleged that Ribhav Rishi created and operated several shell entities using KYC documents of employees, drivers, relatives, and associates to siphon funds from government-linked bank accounts.
The agency identified entities including Capco Fintech Services, RS Traders, and SRR Planning Gurus Private Limited as allegedly being used to layer and route illicit transactions. According to the ED, these entities received “hundreds of crores” diverted from official accounts.
The investigation stems from a wider fraud uncovered earlier this year involving alleged irregular transactions from Haryana government accounts maintained at IDFC First Bank’s Chandigarh branch.
Shell Firm Allegedly Used to Route Funds Through Jewellers
The ED alleged that approximately ₹203 crore from government department accounts was transferred to a firm named Swastik Desh Projects, which investigators described as a shell entity allegedly controlled by Abhay Kumar through family members.
According to court submissions, the funds were later routed to jewellers and third parties in exchange for cash, which was allegedly distributed through associates across the Chandigarh tri-city region. Investigators claimed the accused coordinated movement of illicit funds, arranged cash deliveries, and managed transactions linked to the alleged embezzlement network.
The ED further alleged that Rishi and his family members received personal benefits amounting to around ₹34.22 crore, while Kumar and his relatives allegedly received approximately ₹11.22 crore from entities linked to the transactions under investigation.
Former Bank Officials Accused of Concealing Transactions
Investigators told the court that Abhay Kumar continued projecting himself as an authorised bank official even after resigning from the bank in June 2025. The ED alleged he issued fabricated communications to conceal fraudulent transactions and continued operating shell firms connected to the alleged laundering activities.
The agency described Ribhav Rishi as the “mastermind of the entire fraud” and said his interrogation revealed important details regarding the alleged modus operandi, movement of funds, and involvement of co-conspirators.
The Special PMLA Court granted the ED one additional day of custody for Rishi, while Kumar was sent to judicial custody.
Wider Probe Into Government Fund Misappropriation Continues
The case is part of a broader investigation into suspected financial irregularities involving Haryana government funds deposited with private banks. Earlier investigations by state agencies and the CBI examined forged debit instruments, unauthorised transfers, and alleged collusion between bank officials and external entities.
The ED has already conducted searches across multiple locations linked to former bank employees, shell entities, jewellers, and real estate businesses connected to the alleged fraud network. More arrests and forensic examination of digital and banking records are expected as the probe progresses.
