The Enforcement Directorate has arrested two former employees of IDFC First Bank's Sector 32 branch in Chandigarh in connection with a money laundering investigation. According to reports from The Economic Times and PTI, Ribhav Rishi, a former manager, and Abhay Kumar, an ex-relationship manager, were taken into custody on Monday. A special Prevention of Money Laundering Act (PMLA) court has sent them to ED custody till May 21. The ED confirmed in its latest statement that the investigation has uncovered embezzlement of public funds amounting to ₹645 crore from various government accounts.
The investigation has uncovered embezzlement of public funds amounting to ₹645 crore from various government accounts. As reported by The Economic Times and PTI, the funds were embezzled from bank accounts maintained with the IDFC First Bank's branch by the Haryana government, the UT administration of Chandigarh, and two private schools in Chandigarh and Panchkula. The case stems from an FIR registered by the Haryana State Vigilance and Anti-Corruption Bureau, with the ED noting that the accused are also alleged to have cheated other entities beyond the government accounts.
According to the ED's investigation, Rishi allegedly floated shell entities Capco Fintech Services and RS Trader in the names of his personal assistant and driver. As reported by The Economic Times and PTI, Kumar also floated a shell entity, Swastik Desh Projects, in his wife's and brother-in-law's names. These shell entities received funds worth hundreds of crores of rupees, which were then layered and siphoned off directly from various government accounts. The ED stated that these entities were "directly embezzled" from various government accounts, representing a sophisticated money laundering operation.
The Haryana State Vigilance and Anti-Corruption Bureau has arrested approximately 11 accused, including six bank employees, four private individuals and a government official as part of its investigation. According to The Economic Times and PTI, efforts are underway to trace the complete money trail and identify the other beneficiaries and properties acquired using the embezzled funds. The ED confirmed that efforts are ongoing to "trace the complete money trail and identify the other beneficiaries and properties acquired using the embezzled funds," representing a significant money laundering operation involving multiple government entities and private institutions.
