ED Claims ₹203 Crore Routed Through Shell Firm and Jewellers in IDFC First Bank Scam
The Enforcement Directorate has informed a Special PMLA Court in Panchkula that nearly ₹203 crore allegedly diverted from government department accounts in the IDFC First Bank fraud case was transferred to a shell company and later routed to jewellers and third parties in exchange for cash.
The agency made the submissions while seeking custody of key accused persons 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.
ED Alleges Diversion of ₹645 Crore in Public Funds
In its 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. These entities were allegedly used to siphon funds from government-linked bank accounts.
The agency identified several entities, including Capco Fintech Services, RS Traders and SRR Planning Gurus Private Limited, as alleged vehicles used to layer and route illicit transactions.
According to the ED, these entities received hundreds of crores allegedly diverted from official accounts. The investigation is linked to a wider fraud uncovered earlier this year involving suspected irregular transactions from Haryana government accounts maintained at IDFC First Bank’s Chandigarh branch.
₹203 Crore Allegedly Routed Through Shell Firm
The ED alleged that approximately ₹203 crore from government department accounts was transferred to a firm named Swastik Desh Projects.
Investigators described the firm as a shell entity allegedly controlled by Abhay Kumar through family members.
According to court submissions, the funds were later routed to jewellers and other third parties in exchange for cash. This cash was allegedly distributed through associates across the Chandigarh tri-city region.
The agency claimed that the accused coordinated movement of illicit funds, arranged cash deliveries and managed transactions connected to the alleged embezzlement network.
Personal Benefits Allegedly Received by Accused
The ED further alleged that Ribhav Rishi and his family members received personal benefits amounting to around ₹34.22 crore.
The agency also claimed that Abhay Kumar and his relatives allegedly received approximately ₹11.22 crore from entities linked to the transactions under investigation.
These allegations form part of the agency’s wider probe into the movement, layering and final use of funds allegedly diverted from government accounts.
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 that he issued fabricated communications to conceal fraudulent transactions and continued operating shell firms linked to the alleged laundering activities.
The agency described Ribhav Rishi as the “mastermind of the entire fraud” and stated that his interrogation revealed important details about 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
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 investigation progresses.
Why Strong Financial Oversight Is Crucial
Cases involving alleged shell companies, forged documents and layered transactions show how financial systems can be misused when internal checks are weak.
For organisations handling public funds, corporate accounts or high-value transactions, independent review and proper documentation are essential. Professional auditing services in india can help businesses strengthen internal controls, detect unusual transactions and improve financial transparency.
Shunyatax Global Insight
At Shunyatax Global, we believe financial accountability is the foundation of trust in both public and private institutions. Strong compliance systems, transparent records and regular audits can help reduce fraud risks and support responsible financial management.
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