CHANDIGARH: The Enforcement Directorate on Tuesday conducted searches at 14 premises in Chandigarh, adjoining Mohali in Punjab and Panchkula in Haryana as part of its money laundering investigation into the alleged embezzlement of Rs 645 crore from bank accounts linked to the Haryana government and maintained with IDFC First Bank.
The Chandigarh Zonal Office-II of the ED carried out the searches under the Prevention of Money Laundering Act (PMLA), 2002. The investigation stems from an FIR registered by the Haryana Police in February 2026 over discrepancies in the bank account balances of the Development and Panchayat Department, Haryana, maintained with IDFC First Bank and AU Small Finance Bank.
The searches targeted several jewellers and their associated entities, including Malik Jewellers, KLG Jewels and its associates, MB Gold Traders, Sham Jewellers, Sunder Jewellers and Gourav Kansal, who is alleged to have acted as a middleman in routing and layering the proceeds of crime.
Officials alleged that the transactions were carried out in connivance with the accused to conceal and project the proceeds of crime as legitimate funds. The proceeds were also allegedly laundered through jewellers and reached accused IAS officers and other government servants involved in the IDFC First Bank "fraud".
The agency said the searches led to the recovery of further evidence related to the movement, concealment and projection of the proceeds through various entities and bank accounts. The seized material is being examined.
The ED said the "embezzled" public funds were routed and layered through the bank accounts of various jewellers and projected as business transactions.
The CBI recently filed its third chargesheet in the case before a Panchkula court, naming six Haryana-cadre IAS officers and other government servants in connection with the bank fraud case.
The ED has arrested four persons, filed a chargesheet against 14 entities and attached assets worth Rs 211 crore as part of the investigation. The money laundering case stems from an FIR registered by the Haryana State Vigilance and Anti-Corruption Bureau.
