ED raids 14 premises in Chandigarh, Mohali, Panchkula in ₹645 crore IDFC Bank scam
Synopsis
The ED has raided 14 premises across Chandigarh, Mohali, and Panchkula, targeting jewellers and a middleman allegedly used to launder ₹645 crore in Haryana government funds through IDFC First Bank and AU Small Finance Bank. With the CBI having already filed a third chargesheet naming six Haryana-cadre IAS officers, this case is rapidly evolving into one of the most significant public-fund fraud investigations in the region.
Key Takeaways
The ED raided 14 premises in Chandigarh , Mohali , and Panchkula on 29 September 2026 in the ₹645 crore IDFC First Bank money laundering case.
Searches targeted jewellers including Malik Jewellers , KLG Jewels , M.B.
Gold Traders , Sham Jewellers , and Sunder Jewellers , as well as alleged middleman Gourav Kansal .
The CBI has filed a third chargesheet naming six Haryana-cadre IAS officers and other government servants before the Special Court in Panchkula .
The ED has arrested four accused and attached assets worth approximately ₹211 crore so far.
A prosecution complaint has been filed against 14 accused in the Special Court of PMLA, Panchkula .
The Enforcement Directorate's (ED) Chandigarh Zonal Office II conducted search operations at 14 premises across Chandigarh, Mohali, and Panchkula on 29 September 2026, as part of its ongoing money laundering investigation into the alleged embezzlement of ₹645 crore in public funds belonging to the Haryana government, the Chandigarh Municipal Corporation, and other government accounts. The latest searches yielded fresh evidence on the routing, layering, and concealment of proceeds of crime through multiple entities and bank accounts.
Background of the Investigation
The ED initiated proceedings under the Prevention of Money Laundering Act (PMLA), 2002, following a First Information Report (FIR) registered by Haryana Police in February. That FIR flagged discrepancies in the balances of government bank accounts — specifically those of the Development and Panchayat Department of Haryana — maintained with IDFC First Bank and AU Small Finance Bank. The investigation has since expanded to trace the alleged onward movement of public funds through a network of private entities.
Jewellers and a Middleman in the Crosshairs
The searches covered several jewellers and their associated firms, including Malik Jewellers, KLG Jewels and its associate entities, M.B. Gold Traders, Sham Jewellers, and Sunder Jewellers. Investigators also searched the premises of Gourav Kansal, who allegedly acted as a middleman in routing and layering the proceeds of crime. According to the ED, the embezzled public funds were allegedly funnelled through jewellers' bank accounts and presented as routine business transactions — a classic layering technique used to obscure the origin of illicit money.
IAS Officers and Government Servants Named
The probe has taken on a significant institutional dimension. The ED's investigation has reportedly revealed that the proceeds of crime, after passing through jewellers' accounts, allegedly reached IAS officers and other government servants linked to the fraud. Separately, the Central Bureau of Investigation (CBI) has filed a third chargesheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government servants in connection with the case. This marks a significant escalation in the legal proceedings against senior bureaucrats.
Assets Attached, Arrests Made
So far, the ED has arrested four accused for alleged involvement in money laundering. The agency has also attached, seized, and frozen movable and immovable assets worth approximately ₹211 crore. Additionally, a prosecution complaint has been filed against 14 accused before the Special Court of PMLA in Panchkula, signalling that the agency is advancing toward trial-stage proceedings.
What Comes Next
With fresh evidence recovered in the latest round of searches and the CBI chargesheet already naming senior bureaucrats, investigators are expected to widen the net further. The case raises pointed questions about oversight mechanisms in government banking arrangements — and whether the alleged connivance extended beyond the individuals already named. Further arrests and asset attachments are likely as the inquiry progresses.
Point of View
Yet the scale here — ₹645 crore in public funds from department-level government accounts — suggests the oversight gaps were either exploited over a sustained period or involved active connivance at multiple tiers. The ED's decision to target the jewellery network while the CBI pursues the bureaucratic chain is a coordinated pincer strategy. What remains to be answered publicly is how long the discrepancies in the Haryana Development and Panchayat Department accounts went undetected, and whether any audit mechanism flagged them before the FIR was registered.
NationPress
29 Sept 2026
Frequently Asked Questions
What is the IDFC First Bank scam that the ED is investigating?
It is a money laundering case involving the alleged embezzlement of ₹645 crore in public funds from accounts of the Haryana government, the Chandigarh Municipal Corporation, and other government bodies, maintained with IDFC First Bank and AU Small Finance Bank. The Haryana Police registered an FIR in February after detecting discrepancies in the balances of the Development and Panchayat Department's bank accounts, prompting the ED to launch a PMLA investigation.
Why did the ED target jewellers in its latest raids?
According to the ED, the allegedly embezzled public funds were routed through the bank accounts of jewellers — including Malik Jewellers, KLG Jewels, M.B. Gold Traders, Sham Jewellers, and Sunder Jewellers — and projected as legitimate business transactions. Investigators say this is a classic layering technique to obscure the criminal origin of the funds before they allegedly reached IAS officers and other government servants.
How many people have been arrested and how much has been recovered?
The ED has arrested four accused for alleged involvement in money laundering and has attached, seized, and frozen movable and immovable assets worth approximately ₹211 crore. A prosecution complaint against 14 accused has also been filed before the Special Court of PMLA in Panchkula.
What is the role of the CBI in this case?
The CBI has filed a third chargesheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government servants in connection with the fraud. The CBI and ED are pursuing parallel tracks — the CBI focusing on the bureaucratic chain and the ED on the money laundering trail.
What happens next in the investigation?
With fresh evidence recovered in the 29 September raids and prosecution complaints already filed against 14 accused, further arrests and asset attachments are likely as the probe widens. The cases before the Special Court of PMLA in Panchkula are expected to advance toward trial-stage hearings.
