ED Searches 14 Premises in ₹645 Crore Public Funds Embezzlement Probe
Chandigarh:he Enforcement Directorate (ED) has conducted search operations at 14 premises across Chandigarh, Mohali and Panchkula as part of its ongoing money-laundering investigation into the alleged embezzlement of around ₹645 crore in public funds. The money is alleged to have belonged to the Government of Haryana, the Chandigarh Municipal Corporation and other government accounts.
The searches were carried out by the ED’s Chandigarh Zonal Office-II under the provisions of the Prevention of Money Laundering Act (PMLA), 2002). The investigation stems from an FIR registered by the Haryana Police in February 2026 following discrepancies found in the balances of accounts belonging to the Haryana Development and Panchayats Department. These accounts were maintained with IDFC First Bank and AU Small Finance Bank.
According to the agency’s investigation, the suspected diversion of public money involved a complex network of financial transactions. The ED is examining allegations that the funds were moved through different bank accounts and entities before being presented as legitimate business transactions.
As part of the latest operation, ED teams searched the premises of several jewellers and their associated entities, along with the premises of Gourav Kansal, who has been described by the agency as an alleged middleman involved in routing and layering the suspected proceeds of crime.
The agency has alleged that the suspected embezzled funds were routed through the bank accounts of various jewellers and subsequently shown as business transactions. Investigators are examining whether these transactions were used to conceal the origin of the funds and give them the appearance of legitimate income.
The probe is also looking into the alleged movement of funds from accounts belonging to different Haryana government departments and the Chandigarh administration. According to the ED, some of the money allegedly moved through jewellers and other entities before reaching individuals who are under investigation in the wider bank-fraud case.
The case has also been investigated by the Central Bureau of Investigation (CBI). A third chargesheet has reportedly been filed before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government employees in connection with the alleged bank fraud.
The ED has previously arrested four people in connection with the money-laundering investigation. The agency has also attached, seized or frozen movable and immovable assets valued at approximately ₹211 crore, while filing a prosecution complaint against 14 accused persons before the Special PMLA Court in Panchkula.
The latest searches resulted in the recovery of additional material and evidence that the ED says could help investigators understand how the suspected proceeds were routed, layered and concealed through various entities and bank accounts. The documents and other material recovered during the operation are now being examined by the agency.
The searches represent another step in the continuing investigation into the alleged misuse of government funds. Further action will depend on the findings from the examination of the seized material and the financial trail. The allegations remain under investigation, and the claims against individuals or entities will be subject to the legal process.
News source: Information for this article was gathered from a variety of reliable news outlets.
