The CBI has uncovered an elaborate money-laundering network in the alleged Rs 657-crore bank scam, revealing that more than Rs 329 crore of siphoned government funds was routed through shell companies to a Chandigarh-based jeweller, converted into cash through bogus gold transactions and allegedly redistributed among the conspirators.
According to the investigation, the fraud involved officials of IDFC First Bank and AU Small Finance Bank acting in collusion with Haryana Government officers, including IAS officers, to siphon off funds from eight Haryana Government departments and two departments of the Chandigarh Administration.
The CBI alleged that the fraud was masterminded by former IDFC First Bank branch manager Ribhav Rishi, who continued the operation after moving to AU Small Finance Bank. Government funds were allegedly routed through shell entities, including Swastik Desh Projects, Capco Fintech Services, RS Traders, SRR Planning Gurus, Vistamed Solutions and Maa Vaibhav Laxmi Interior.
Investigators said Rajan Singh Katodiah, proprietor of Sawan Jewellers in Sector 35, Chandigarh, received Rs 329.57 crore between November 2024 and February 2026, largely from these shell firms. The amount included about Rs 138 crore from Capco Fintech Services, Rs 131 crore from Swastik Desh Projects and Rs 45 crore from RS Traders.
The CBI alleged that Katodiah purchased gold from suppliers and issued invoices in the names of shell entities to create a legitimate transaction trail. Instead of delivering the gold to the shell firms, it was allegedly sold in the open market, generating cash that was handed over to Ribhav Rishi and his associates for further distribution.
Statements recorded by the CBI from Rishi’s employees, including Rahul, Manish and Amritpal, indicate that they regularly collected large amounts of cash from the jeweller’s premises. Another employee of the jeweller reportedly told investigators that he collected gold bars from suppliers and more than Rs 155 crore in cash from bullion traders, which was subsequently handed over to Rishi’s couriers. During searches, the CBI seized 5,589 grams of unaccounted gold and Rs 54.2 lakh in cash. The agency has also alleged that fake GST invoices were generated to legitimise the transactions.
The investigation has further identified Chandigarh-based real estate businessman Vikram Wadhwa, proprietor of Hotel Landmark, as an alleged beneficiary. According to the CBI, Wadhwa received Rs 4.57 crore in cash from Rishi’s associates and Rs 33.25 crore through bank transfers routed via shell companies. The agency alleged that he used the proceeds to acquire or make advance payments for high-value properties in Chandigarh and Mullanpur worth over Rs 55 crore. The CBI also claimed that Wadhwa cultivated senior public servants and encouraged them to favour IDFC First Bank in official dealings. A property in Chandigarh’s Industrial Area remains under investigation.