ED Conducts Searches In ₹645 Crore Haryana Public Funds Embezzlement Case
The Enforcement Directorate (ED), Chandigarh Zonal Office-II, has conducted search operations at 14 premises across Chandigarh, Mohali and Panchkula as part of its money-laundering investigation into the alleged embezzlement of ₹645 crore in public funds belonging to the Government of Haryana, Chandigarh Municipal Corporation and other government accounts.
The ED investigation was initiated following an FIR registered by the Haryana Police in February 2026. The case relates to alleged discrepancies in the balances of bank accounts belonging to the Development and Panchayat Department, Haryana, maintained with IDFC First Bank and AU Small Finance Bank.
The searches targeted several jewellers and their associated entities, including Malik Jewellers, KLG Jewels and its associated companies, M.B. Gold Traders, Sham Jewellers and Sunder Jewellers. The premises of Gourav Kansal, who is alleged to have acted as a middleman in routing and layering the proceeds of crime, were also searched.
According to the ED, the investigation has revealed that the allegedly embezzled public funds were routed through bank accounts linked to various jewellers and subsequently shown as legitimate business transactions.
The agency alleges that these transactions were carried out in coordination with the accused persons to conceal the origin of the funds and project the proceeds of crime as legitimate money.
The investigation found that Malik Jewellers allegedly received around ₹58 crore, while the KLG Group — comprising KLG Jewels, KLG Infra and KLG & Co. — allegedly received around ₹26 crore. M.B. Gold Traders, Sham Jewellers and Sunder Jewellers allegedly received approximately ₹5 crore, ₹3.66 crore and ₹3.15 crore, respectively.
According to the ED, these funds were received from intermediate shell entities allegedly floated by Ribhav Rishi, whom the agency has identified as the alleged mastermind in the case.
The agency further alleged that the jewellers were involved in laundering proceeds generated through bank accounts belonging to various departments of the Haryana government and the Chandigarh UT Administration.
The ED said the allegedly laundered funds eventually reached IAS officers and other government officials accused of being involved in the IDFC First Bank fraud.
In a related development, the CBI has filed a third chargesheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government employees in connection with the bank fraud case.
The latest ED searches resulted in the recovery and seizure of approximately ₹4.30 crore in cash. Bank balances of around ₹22 crore belonging to jewellers and associated entities have also been frozen.
Investigators also recovered and seized several incriminating documents and digital evidence during the searches.
Earlier in the same case, the ED had arrested four accused persons for their alleged involvement in money laundering. The agency has also attached, seized or frozen movable and immovable assets worth approximately ₹211 crore during the course of the investigation.
The ED has further filed a Prosecution Complaint against 14 accused persons before the Special Court (PMLA), Panchkula.
Further investigation into the case is underway.
News Source : Information for this article was gathered from a variety of reliable news outlets.
