The ₹597 Crore IDFC First Bank Scam investigation has intensified after the Enforcement Directorate conducted search operations at 19 locations across Chandigarh, Mohali, Panchkula, Gurgaon, and Bengaluru. Authorities suspect that government funds meant for fixed deposits were diverted through shell companies and layered financial transactions. Investigators are examining the role of former bank employees, business entities, and intermediaries linked to the alleged fraud. Officials also suspect that fake gold transactions and real estate investments were used to conceal the origin of the diverted money. The probe is being conducted under the Prevention of Money Laundering Act.

ED Raids at 19 Locations in ₹597 Crore IDFC First Bank Scam Linked to Government Funds

The Enforcement Directorate conducted raids at 19 locations in connection with a ₹597 crore IDFC First Bank scam involving the alleged diversion of government funds. Investigators suspect shell companies, fake gold transactions, and real estate investments were used to launder money from public accounts.

The ₹597 crore IDFC First Bank scam investigation has intensified after the Directorate of Enforcement conducted coordinated search operations across multiple cities targeting individuals and entities suspected of diverting government funds.

The Enforcement Directorate carried out searches at 19 premises on 12 March 2026 in Chandigarh, Mohali, Panchkula, Gurgaon, and Bengaluru as part of a money laundering investigation linked to alleged embezzlement from government accounts.

Officials said the investigation centres on the suspected diversion of funds belonging to the Haryana government and Chandigarh Municipal Corporation, which were meant to be placed as fixed deposits with IDFC First Bank.

According to investigators, the funds were allegedly diverted without authorization and routed through shell companies, resulting in a loss of approximately ₹597 crore from public accounts.

The searches targeted former bank employees, their associates, and several business entities suspected of receiving or laundering the diverted funds.

Authorities stated that the case highlights potential weaknesses in financial oversight involving government deposits placed in banking institutions.

ED Investigation Into IDFC First Bank Scam and Government Fund Diversion

The Enforcement Directorate initiated the probe under the provisions of the Prevention of Money Laundering Act, 2002, following a first information report filed by the Haryana state vigilance and anti-corruption bureau.

The FIR was registered in February 2026 at Panchkula after irregularities were detected in the bank account balances of the Haryana Development and Panchayat Department, maintained with IDFC First Bank and AU Small Finance Bank.

Investigators believe the fraud involved a systematic diversion of public funds through a network of shell companies and intermediary accounts designed to conceal the source of the money.

According to ED officials, the funds were layered through multiple financial transactions in an attempt to obscure their origin and final beneficiaries.

Search operations included premises linked to former bank employees Ribhav Rishi and Abhay Kumar, along with family members and business associates.

Authorities suspect that these individuals played a role in facilitating the diversion and movement of funds through unauthorised banking transactions.

Officials described the case as a complex financial fraud involving coordinated activity between insiders and external beneficiaries.

Shell Companies, Fake Gold Transactions, and Real Estate Investments

Investigators say the alleged fraud involved the creation of a shell entity, Swastik Desh Projects Pvt Ltd, to which large portions of government funds were initially transferred.

The company is reportedly linked to partners Swati Singla and Abhishek Singla, who are suspected of helping channel the diverted funds into the financial network.

According to investigators, some of the money was routed through jewellers to create the appearance of legitimate gold purchase transactions using bogus billing records.

Authorities believe these fake transactions were used to disguise the origin of the funds before they were transferred to additional entities.

Officials also identified hotelier and real estate developer Vikram Wadhwa as a key beneficiary of the alleged fraud.

Investigators claim that Wadhwa received proceeds of crime in his bank accounts before transferring funds into real estate ventures, including Prisma Residency LLP, Kinspire Realty LLP, and Martell Buildwell LLP.

Documents linked to real estate investments were seized during the search operations.

Officials said Wadhwa could not be located during the raids and is believed to have been absconding since the fraud surfaced.

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Bank Accounts Frozen and Evidence Seized in Nationwide Searches

The investigation also covered business entities suspected of participating in the laundering network.

These included Chandigarh Mega Store, whose partner Mohit Goyal was among those searched during the coordinated raids.

Other entities covered in the investigation include Maa Vaibhav Laxmi Interiors and SRR Planning Gurus Pvt Ltd, which allegedly received funds directly or indirectly linked to the diversion.

According to the Enforcement Directorate, investigators froze more than 90 bank accounts connected to the suspected money laundering network.

During the search operations, officials seized digital records, financial documents, and other materials believed to be connected to the diversion and layering of funds.

Authorities say the evidence will be analysed to identify additional beneficiaries and establish the full financial trail of the alleged fraud.

IDFC First Bank Statement and Continuing Investigation

Earlier this week, IDFC First Bank confirmed in a regulatory disclosure that it has paid a total net principal amount of ₹645 crore to claimants linked to the affected accounts.

The bank stated that this amount was ₹55 crore higher than the earlier estimated liability of ₹590 crore.

The bank also said that after settlement of claims, no further discrepancies or pending claims remain in connection with the affected accounts.

However, the Enforcement Directorate clarified that the criminal investigation into the alleged money-laundering network is ongoing.

Officials said further analysis of seized documents and financial transactions will determine whether additional individuals or entities were involved in the diversion of public funds.

The case has drawn attention to the broader issue of financial accountability and oversight in handling government deposits within banking institutions.

Experts note that such investigations are crucial to ensuring transparency and preventing misuse of public funds in complex banking and financial transactions.

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