IDFC First Bank scam: ED arrests 2 ex-employees for ₹645 crore embezzlement
Synopsis
Two former IDFC First Bank employees have been arrested by the ED for allegedly siphoning off ₹645 crore from Haryana government and Chandigarh UT accounts through shell companies registered in the names of relatives and domestic staff — a case that has already led to the suspension of two IAS officers.
Key Takeaways
The ED arrested former IDFC First Bank employees Ribhav Rishi and Abhay Kumar on Monday under the PMLA, 2002 .
Both accused have been remanded to 10 days' ED custody until 21 May by a Special PMLA Court in Chandigarh.
Investigation reveals embezzlement of ₹645 crore from accounts of the Haryana government , Chandigarh UT Administration , and two private schools.
Shell entities — Capco Fintech Services , R S Trader , and Swastik Desh Projects — were allegedly used to layer and siphon funds.
The Haryana government had earlier suspended two 2012 batch IAS officers — Ram Kumar Singh and Pardeep Kumar — in connection with the scam.
More than 90 bank accounts were frozen during earlier searches across 19 premises in five cities.
The Enforcement Directorate (ED) has arrested two former employees of IDFC First Bank in connection with an ongoing investigation into the embezzlement of ₹645 crore from the bank accounts of the Haryana government, the Chandigarh UT Administration, and others. The arrests, made on Monday at the Chandigarh Zonal Office, mark a significant escalation in a case that has already ensnared two senior IAS officers.
The Arrests
The ED arrested Ribhav Rishi and Abhay Kumar, both former employees of IDFC First Bank, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. A Special Court (PMLA) in Chandigarh subsequently granted 10 days' ED custody of both accused until 21 May, following their arrest under Section 19 of PMLA, 2002.
How the Fraud Was Allegedly Executed
According to the ED, the investigation has revealed systematic embezzlement of public funds totalling ₹645 crore from accounts of the Haryana Government, the Chandigarh UT Administration, and two private schools based in Chandigarh and Panchkula, all maintained with IDFC First Bank.
The agency said that Ribhav Rishi allegedly floated shell entities — Capco Fintech Services and R S Trader — registered in the names of his personal assistant and driver to misuse government funds. Similarly, Abhay Kumar allegedly floated a shell entity, Swastik Desh Projects, in the names of his wife and brother-in-law to illegally divert depositors' funds. These shell entities reportedly received hundreds of crores directly embezzled from various government department accounts, which were then further layered and siphoned off.
IAS Officers Suspended
The arrests come weeks after the Haryana government suspended two IAS officers in connection with the same scam. Ram Kumar Singh, a 2012 batch officer who was serving as Additional CEO of Panchkula Metropolitan Development Authority, and Pardeep Kumar, also a 2012 batch officer serving as Director of State Transport and Special Secretary in the Transport Department, were both suspended before the latest arrests.
Earlier Searches and Evidence Seized
In an earlier phase of the investigation, the ED conducted searches at 19 premises across Chandigarh, Mohali, Panchkula, Gurugram, and Bengaluru. During these searches, more than 90 bank accounts were frozen, and incriminating material — including digital and documentary evidence — was seized.
Investigation Ongoing
The ED has stated that efforts are ongoing to trace the complete money trail and identify other beneficiaries and properties acquired from the embezzled funds. With two arrests made and two IAS officers already suspended, the probe is likely to widen further in the coming weeks.
Point of View
But suspensions without prosecution rarely deter. The real accountability test will come if the money trail leads higher up the chain — something the ED's ongoing probe has not yet resolved.
NationPress
9 Jul 2026
Frequently Asked Questions
Who has been arrested in the IDFC First Bank ₹645 crore scam?
The ED has arrested two former IDFC First Bank employees — Ribhav Rishi and Abhay Kumar — under the Prevention of Money Laundering Act, 2002. Both have been remanded to 10 days' ED custody until 21 May by a Special PMLA Court in Chandigarh.
How much money was allegedly embezzled in the IDFC First Bank scam?
According to the ED, ₹645 crore was embezzled from the bank accounts of the Haryana government, the Chandigarh UT Administration, and two private schools in Chandigarh and Panchkula, all maintained with IDFC First Bank.
How was the fraud allegedly carried out?
The accused allegedly floated shell entities — Capco Fintech Services, R S Trader, and Swastik Desh Projects — registered in the names of relatives and domestic staff. Funds were directly embezzled from government accounts and then layered and siphoned off through these entities.
Were any government officials suspended in connection with this case?
Yes. The Haryana government suspended two 2012 batch IAS officers — Ram Kumar Singh, Additional CEO of Panchkula Metropolitan Development Authority, and Pardeep Kumar, Director of State Transport — in connection with the scam last month.
What action has the ED taken beyond the arrests?
The ED had earlier searched 19 premises across Chandigarh, Mohali, Panchkula, Gurugram, and Bengaluru, freezing more than 90 bank accounts and seizing digital and documentary evidence. Efforts to trace the full money trail and identify other beneficiaries are ongoing.
