ED arrests Sawan Jewellers partner in ₹645 crore IDFC First Bank fraud case
Synopsis
The ED's fifth arrest in the ₹645 crore IDFC First Bank fraud lands Rajan Singh Katodiah — the man investigators say was the operational brain behind Sawan Jewellers and a key node in funnelling ₹332 crore of allegedly embezzled Haryana government funds through shell entities and bullion purchases. With ₹225 crore in assets already frozen and a charge sheet against 14 accused, this probe is far from over.
Key Takeaways
The Enforcement Directorate arrested Rajan Singh Katodiah , managing partner of M/s Sawan Jewellers , on 23 October 2026 in the ₹645 crore IDFC First Bank fraud case.
A Special PMLA Court granted the ED four days' remand for further interrogation.
Between 6 November 2024 and 18 February 2026 , approximately ₹332 crore allegedly passed through Sawan Jewellers' accounts from shell entities linked to prime accused Ribhav Rishi .
Assets worth approximately ₹225 crore have been attached, seized, or frozen so far.
A charge sheet has been filed against 14 accused before the Special PMLA Court in Panchkula ; Katodiah is the fifth person arrested in the case.
The Enforcement Directorate (ED) has arrested Rajan Singh Katodiah, active managing partner of Chandigarh-based M/s Sawan Jewellers, in connection with the alleged ₹645 crore IDFC First Bank fraud involving the embezzlement of government funds from multiple departments of the Haryana government and the Chandigarh Administration. Katodiah was taken into custody by the ED's Chandigarh Zonal Office-II on Thursday, 23 October 2026, and subsequently produced before a Special Court under the Prevention of Money Laundering Act (PMLA), which granted the agency four days' remand for further interrogation.
Who Is Rajan Singh Katodiah
According to the ED, Katodiah was not merely a nominal partner — he was the sole operational in-charge of M/s Sawan Jewellers, located in Sector 35-C, Chandigarh. The agency alleged that he entered into a criminal conspiracy with the case's prime accused, Ribhav Rishi, and others to systematically misappropriate public funds. Katodiah's central role, investigators say, was to facilitate the placement and concealment of proceeds of crime generated through the underlying bank fraud.
How the Money Allegedly Flowed
Investigations revealed that between 6 November 2024 and 18 February 2026, bank accounts linked to M/s Sawan Jewellers received approximately ₹332 crore from several shell and intermediary entities allegedly controlled by Rishi. Those entities reportedly included Capco Fintech Services, Swastik Desh Projects, RS Traders, Chandigarh Mega Store, SRR Planning Gurus Pvt Ltd, Vistamed Solutions, Maa Vaibhav Laxmi Interior, and Divya Arora, wife of Ribhav Rishi. The ED alleged that funds were subsequently layered through business transactions and integrated into the firm's day-to-day operations to project them as legitimate assets — a classic three-stage laundering model of placement, layering, and integration.
Notably, investigators flagged a sharp spike in the jeweller's bullion purchases after its association with Rishi began, which the ED contends points to a prior arrangement between the accused for laundering illicit proceeds.
Scale of the Broader Investigation
The current arrest is the fifth in the case, with four other accused having been taken into custody earlier. The ED has so far attached, seized, or frozen assets worth approximately ₹225 crore — spanning both movable and immovable properties. A charge sheet has already been filed against 14 accused persons before the Special PMLA Court in Panchkula. The underlying case centres on the alleged embezzlement of government funds held across various Haryana state departments and the Chandigarh Administration, routed through IDFC First Bank accounts.
What Comes Next
With Katodiah in four-day ED custody, investigators are expected to interrogate him on the full trail of the ₹332 crore that passed through Sawan Jewellers and on any undisclosed assets or co-conspirators. The agency has said further investigation is underway. Given that the charge sheet already covers 14 accused and the total alleged fraud stands at ₹645 crore, additional arrests and asset attachments cannot be ruled out as the probe advances.
Point of View
With their high-volume cash and bullion transactions, remain a preferred conduit for layering illicit funds. The ED's own evidence — a sudden spike in bullion purchases coinciding with the entry of Ribhav Rishi's shell network — is precisely the kind of red flag that banks and regulators are mandated to catch early. That ₹332 crore could reportedly cycle through a single Chandigarh jeweller over roughly 15 months raises uncomfortable questions about due-diligence failures upstream. With 14 accused already charge-sheeted and five now arrested, the investigative framework is in place; the harder question is why the underlying fraud was not detected sooner at the level of the bank accounts themselves.
NationPress
23 Oct 2026
Frequently Asked Questions
Who is Rajan Singh Katodiah and why was he arrested?
Rajan Singh Katodiah is the active managing partner and sole operational in-charge of M/s Sawan Jewellers in Sector 35-C, Chandigarh. The ED arrested him on 23 October 2026, alleging that he conspired with prime accused Ribhav Rishi to funnel and launder approximately ₹332 crore of allegedly embezzled government funds through the jewellery firm's accounts.
What is the ₹645 crore IDFC First Bank scam?
The case involves the alleged embezzlement of government funds from multiple departments of the Haryana government and the Chandigarh Administration, routed through IDFC First Bank accounts. The ED has filed a charge sheet against 14 accused before the Special PMLA Court in Panchkula and has made five arrests so far.
How much custody has the court granted the ED?
The Special PMLA Court produced Katodiah before it and granted the ED four days' remand for further interrogation into the alleged money-laundering conspiracy.
How much in assets has the ED seized in this case?
The ED has so far attached, seized, or frozen assets worth approximately ₹225 crore, including both movable and immovable properties, as part of its ongoing investigation into the ₹645 crore fraud.
Who are the other accused in this case?
The prime accused is Ribhav Rishi, who allegedly controlled a network of shell and intermediary entities — including Capco Fintech Services, Swastik Desh Projects, and RS Traders — used to channel funds into Sawan Jewellers. Four other accused were arrested before Katodiah, and a charge sheet has been filed against 14 persons in total.
