The Enforcement Directorate (ED) on Tuesday conducted searches at 14 locations in Chandigarh, Mohali and adjoining areas as part of its investigation into the alleged diversion and layering of funds linked to the ₹650 crore bank fraud case.
Premises connected with several jewellers and other businessmen were searched during the operation. The agency examined documents, bank account records and other financial material. Some people connected with the transactions were also reportedly questioned.
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What Is the ₹650 Crore Case?
The investigation is linked to alleged financial irregularities that came to light after the Haryana Police registered an FIR in February 2026. The case relates to accounts of the Haryana Development and Panchayats Department maintained with IDFC First Bank and AU Small Finance Bank.
As the investigation progressed, the names of several jewellers and business entities based in Chandigarh, Mohali and Panchkula reportedly surfaced.
The ED is examining whether funds allegedly diverted from government accounts were routed through different bank accounts and entities.
The agency suspects that a portion of the money may have been layered through jewellers’ accounts to conceal its original source. Investigators are also examining whether these transactions were presented as genuine business dealings.
Who Was Covered in the Searches?
The premises searched reportedly included those linked to Malik Jewellers, KLG Jewels, M B Gold Traders, Sham Jewellers and Sundar Jewellers. Premises linked to alleged middleman Gaurav Kansal were also searched. The agency is tracing the chain of transactions and examining the financial links between the individuals and entities involved.
The scope of the investigation is not necessarily limited to the accounts of the Haryana Development and Panchayats Department. The agency is also examining whether the allegedly diverted funds included money belonging to the Chandigarh administration or other government departments.
Investigators are further looking into whether any portion of the allegedly diverted funds reached government officials, including IAS officers.
What Are the ED and CBI Investigating?
The Central Bureau of Investigation (CBI) is separately investigating the alleged bank fraud. Six Haryana-cadre IAS officers have reportedly been named as accused in the CBI investigation. The agency is expected to file its third chargesheet in the case.
The ED’s action is focused on the financial trail, particularly allegations that proceeds were concealed or made to appear as legitimate transactions through multiple accounts and business entities.
During its investigation, the ED has so far attached or seized assets worth around ₹211 crore. However, the agency has not issued a detailed official statement on Tuesday’s searches. Further investigation and questioning are being conducted on the basis of documents and financial records recovered or examined during the operation.
Why Are Real Estate Deals Under Scrutiny?
Meanwhile, the ED’s action in Mohali continued for the second consecutive day. On Monday, around 15 agency officials searched premises in TDI City and examined documents related to Change of Land Use (CLU) and alleged financial irregularities. On Tuesday, the agency also reportedly conducted searches at Mohali City Centre.
Builders and their associates connected with Mohali City Centre are being questioned as part of the ongoing investigation. The agency is also examining real estate transactions and their alleged financial links. The back-to-back searches have brought real estate dealings and their suspected financial connections under scrutiny alongside the alleged diversion of government funds.
The ED’s investigation is currently focused on alleged fictitious transactions, the movement of government funds, layering through multiple accounts and the identification of the eventual beneficiaries. The agency is expected to determine the next course of action after examining the banking records, transaction documents and other material gathered during the searches.
The searches widen the focus of the ₹650 crore case beyond the original bank transactions to the alleged movement and layering of funds through businesses and other entities. The key task for investigators will be to establish the complete money trail and identify the eventual beneficiaries of any funds found to have been illegally diverted.
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