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Searches conducted across Tricity, Gurugram and Bengaluru; shell firms and bogus gold billing used to siphon public funds, agency says

Chandigarh: The Enforcement Directorate (ED) on Friday said it has frozen more than 90 bank accounts after conducting searches in connection with a ₹590 crore money laundering case linked to the alleged siphoning of Haryana government funds through accounts in IDFC First Bank. The agency said the investigation has uncovered a complex fraud involving shell companies, layered financial transactions and bogus billing for gold purchases to divert public money.

Raids Across Three Cities

The ED carried out searches on March 11 at 19 locations across the Chandigarh Tricity region — Chandigarh, Mohali and Panchkula — as well as in Gurugram and Bengaluru. During the raids, investigators seized digital and documentary evidence related to the alleged diversion of funds. According to the ED, the accused embezzled government funds by routing them through multiple shell entities and layering transactions to conceal their origin.

Shell Firms and Bogus Gold Billing

The agency said a key method used in the fraud involved channelling funds through jewellers’ bank accounts to create the appearance of legitimate gold purchases through fake invoices.

One of the shell companies identified in the case is Swastik Desh Projects Pvt Ltd, whose partners are Swati Singla and Abhishek Singla, the ED said. The agency also alleged that the proceeds of crime were diverted into accounts linked to former bank employees, including Ribhav Rishi and his wife, Divya Arora.

Case Origin and Arrests

The ED registered the case under the Prevention of Money Laundering Act (PMLA) based on an FIR filed by the Haryana State Vigilance and Anti-Corruption Bureau. According to the Bureau, 11 people have been arrested so far, including:

• Six bank employees

• Four private individuals

• One government official

The alleged scam is believed to have been carried out over the past year, involving insiders in the banking system. The ED said further investigation is underway to trace the full trail of funds and identify other beneficiaries of the alleged fraud.