The Enforcement Directorate conducted extensive searches at 14 locations in Chandigarh, Mohali and Panchkula on Tuesday as part of its money laundering investigation into alleged embezzlement of ₹645 crore from bank accounts linked to the Haryana government and maintained with IDFC First Bank. According to latest reports, the searches covered premises linked to several jewellers, including Malik Jewellers, KLG Jewels, M.B. Gold Traders, Sham Jewellers and Sunder Jewellers. The latest action focused on gathering evidence on the movement of alleged proceeds of crime and the entities and individuals through which the funds were allegedly routed.
The central agency alleges that the embezzled public funds were routed and layered through bank accounts of various jewellers and projected as business transactions. As reported by The Hindu BusinessLine, these transactions were allegedly carried out in connivance with accused persons to conceal and project the proceeds of crime as legitimate funds. The proceeds of crime are also alleged to have been laundered by jewellers which allegedly reached accused IAS officers and other government servants involved in the IDFC First Bank fraud. The ED's investigation involves alleged embezzlement from bank accounts of the Haryana Government, Chandigarh UT Administration and two private schools in Chandigarh and Panchkula maintained with IDFC First Bank.
The CBI recently filed its third charge sheet in this case before a Panchkula court and named six Haryana-cadre IAS officers and other government servants in connection with the bank fraud case. According to The Hindu BusinessLine, the money laundering case stems from an FIR registered by the Haryana State Vigilance and Anti-Corruption Bureau. The CBI investigation is examining the alleged diversion of funds from government accounts maintained with IDFC First Bank, including accounts linked to Chandigarh entities.
The ED had previously arrested four persons, filed a charge sheet against 14 entities and attached assets worth ₹211 crore as part of this investigation. As reported by The Hindu BusinessLine, the agency's investigation has resulted in significant asset recovery and multiple arrests in connection with the alleged fraud involving government-linked bank accounts. The ED's official records show it filed a Prosecution Complaint against 14 accused persons and entities before the Special Court (PMLA) and had provisionally attached properties worth ₹200.84 crore. The broader figure of around ₹211 crore includes assets that the agency has attached, seized or frozen during the investigation.
The bank had initially estimated the principal amount involved in the incident at ₹590 crore. It later said it had received claims and paid ₹645 crore to the concerned clients, with the additional ₹55 crore relating to the same incident and branch. The ED has previously told the Special PMLA Court in Panchkula that around ₹203 crore allegedly diverted from government department accounts was transferred to a shell entity and subsequently routed to third parties, including jewellers. The agency alleged that cash was received in exchange for some of these transactions, with the latest searches expected to help examine the alleged flow of funds, including their routing, layering and concealment.
