New Delhi, 29 September (H.S.): The Enforcement Directorate (ED) on Tuesday conducted searches at 14 locations across Chandigarh, Mohali and Panchkula in connection with the alleged IDFC FIRST Bank scam involving the suspected misappropriation of Rs 645 crore in public funds from accounts maintained by the Haryana government, the Chandigarh Municipal Corporation and other government entities.

According to the ED, the searches yielded documents and other evidence allegedly relating to the routing and layering of public funds through multiple accounts and entities, as well as attempts to portray such transactions as legitimate business dealings.

The ED’s Chandigarh Zonal Office-II had initiated an investigation under the Prevention of Money Laundering Act (PMLA), 2002, on the basis of an FIR registered by the Haryana Police in February 2026. The FIR contains allegations concerning discrepancies in the balances of accounts operated by the Haryana Department of Development and Panchayats with IDFC FIRST Bank and AU Small Finance Bank.

According to the investigating agency, searches were carried out on Tuesday at the premises of several jewellery businesses and entities associated with them in Chandigarh, Mohali and Panchkula. The premises searched included Malik Jewellers, KLG Jewels and its associated entities, MB Gold Traders, Sham Jewellers and Sunder Jewellers. Premises linked to Gaurav Kansal were also searched.

The ED has alleged that Kansal acted as an intermediary in the movement of proceeds of crime through various channels and in the layering of transactions. The agency claimed that allegedly misappropriated government funds were routed through the bank accounts of various jewellery businesses, with multiple layers of transactions being used to conceal the purported source of the funds.

According to the ED, these transactions were allegedly presented as legitimate business activities in an attempt to give the proceeds of crime the appearance of legitimate funds.

The agency further alleged that jewellery businesses were involved in the process of allegedly laundering funds withdrawn from accounts belonging to various departments of the Haryana government and the Chandigarh Administration. According to the ED, a portion of the alleged proceeds of crime also reached certain IAS officers and other government employees whose roles in the alleged bank fraud are under investigation.

The ED said the Central Bureau of Investigation (CBI) has filed a third chargesheet in the case before the Special Court in Panchkula. The chargesheet names six IAS officers of the Haryana cadre and other government employees as accused. The ED said four persons had already been arrested in connection with the money-laundering allegations in the case.

The agency further stated that, during the course of the investigation, movable and immovable assets worth approximately Rs 211 crore had been attached, seized or frozen. In addition, a prosecution complaint had already been filed before the Special PMLA Court in Panchkula against 14 accused persons.

According to the ED, the searches conducted on Tuesday resulted in the recovery of further evidence allegedly relating to the routing, layering and concealment of proceeds of crime through various entities and bank accounts, as well as attempts to project such funds as legitimate income. The documents and other material recovered during the searches are being examined.

Further investigation in the case is continuing.

---------------

Hindusthan Samachar / Jun Sarkar