ED Uncovers Rs 597 Crore Fraud; 90 Bank Accounts Frozen Across 4 Cities

On Friday, the Enforcement Directorate froze 90 bank accounts and confiscated digital and documentary proof in the raids conducted at 19 locations across Chandigarh, Haryana, Punjab, and Bengaluru. The raid has allegedly discovered an Rs 597 crore fraud scheme.

The fraud targeted government money, which was held with IDFC First Bank. The investigation revealed that the funds were from the Haryana government, the Chandigarh Municipal Corporation, and other government accounts. These funds were supposed to be invested as a fixed deposit. However, these were diverted without proper authorisation.

On March 12, the officials carried out a raid on Mohali, Panchkula, Gurgaon and Bengaluru. The raid targeted the former bank officers Rishav Rishi and Abhay Kumar, their families, fake companies, jewellers and real estate developers.

Ribhav Rishi, who resigned from IDFC First Bank in June 2025, is suspected of using multiple shell firms to steal the funds. Investigators say the fraudulent activities continued for around a year and were carried out with the help of insiders from the banking sector.

The investigation started after a mismatch was found in the Development and Panchayat Departments’ accounts at IDFC Bank and AU Small Finance Bank. Due to this, the State Vigilance and Anti-Corruption Bureau, Panchkula, filed an FIR in February 2026.

The investigations revealed that the stolen money was funnelled through several fake entities. The money was transferred into Swastik Desh Projects Pvt. Ltd., a company run by partners Swati Singla and Abhishek Singla. Later on, the funds were funnelled into jewellers’ accounts using fake invoices to make it seem like gold was purchased.

Authorities also traced a part of the diverted money to bank accounts linked to Rishi’s wife, Divya Arora. Additionally, hotelier and real estate developer Vikram Wadhwa is alleged to have received funds directly, which were later moved to real estate firms including Prisma Residency LLP, Kinspire Realty LLP and Martell Buildwell LLP. The authorities said that Wadhwa was not found at his premises during the raids and is allegedly absconding.