Chandigarh, April 9 (NationPress) The government of Haryana has taken significant action by suspending two IAS officers amid the ongoing investigation into the Rs 597 crore IDFC First Bank and AU Small Finance Bank fraud.

The individuals suspended include Ram Kumar Singh, a 2012 batch officer who served as the Additional CEO of the Panchkula Metropolitan Development Authority, and Pardeep Kumar, also from the 2012 batch, who held the position of Director of State Transport and Special Secretary in the Transport Department.

According to the official decree, both officers will be stationed at the Chief Secretary's office during their suspension.

Last month, the Directorate of Enforcement (ED) executed raids at 19 locations spanning Chandigarh, Mohali, Panchkula, Gurgaon, and Bangalore in relation to the IDFC First Bank investigation. Over 90 bank accounts have been frozen, and both digital and documentary evidence suggesting wrongdoing has been confiscated, as stated by the ED.

The ED's Chandigarh Zonal Office indicated that funds had been misappropriated from the accounts of the Haryana government, the Chandigarh Municipal Corporation, and additional government organizations.

The investigation was initiated under the Prevention of Money Laundering Act (PMLA), 2002, following an FIR lodged by the State Vigilance and Anti-Corruption Bureau in Panchkula in February 2026, concerning discrepancies in the bank account balances of the Development and Panchayat Department of Haryana with IDFC Bank and AU Small Finance Bank.

These funds were intended for fixed deposit at the bank; however, the accused allegedly diverted these government assets without proper authorization, according to the ED.

The search operations have included former bank employees such as Ribhav Rishi and Abhay Kumar, along with their families and associated shell entities, including M/s. Swastik Desh Projects, M/s. Capco Fintech Services, and M/s. Maa Vaibhav Laxmi Interiors, as well as real estate developers like Vikram Wadhwa and his business interests.

The ED's findings reveal that the public funds embezzled by the suspects were funneled through multiple shell companies.

The modus operandi of the accused involved establishing a shell entity named Swastik Desh Projects, initially diverting government funds into this account. The partners of Swastik Desh include Swati Singla and Abhishek Singla.

Subsequently, a significant portion of the funds was channeled through the accounts of jewellers to fabricate an illusion of gold purchases via fictitious billing, as per the ED's statement.

This scam has reportedly transpired over the past year, aided by former bank employees, the ED has noted.

Rishi, who previously worked at IDFC First Bank, allegedly utilized various shell companies to misappropriate bank funds before resigning in June 2025.

Some of the proceeds from these illicit activities reached the bank accounts of Rishi and his wife, Divya Arora. Additionally, a considerable sum was misappropriated by Wadhwa, a hotelier and real estate developer involved in several projects in Mohali, as stated by the ED.