ED raids 19 locations in Rs 597 crore IDFC First Bank fraud; over 90 bank accounts frozen

Core Viewpoint - The Enforcement Directorate (ED) is investigating a significant scam involving the embezzlement of approximately Rs 597 crore (about $72 million) from government accounts linked to IDFC First Bank, with searches conducted at multiple locations related to former bank employees and various shell entities [2][12]. Group 1: Investigation Details - The investigation was initiated under the Prevention of Money Laundering Act, 2002, following a FIR registered by the State Vigilance and Anti-Corruption Bureau due to discrepancies in bank account balances of the Development and Panchayat Department of Haryana [3][12]. - Searches were conducted at 19 locations across Chandigarh, Mohali, Panchkula, Gurgaon, and Bengaluru, targeting premises linked to former bank employees Ribhav Rishi and Abhay Kumar, as well as several shell entities [12][13]. Group 2: Modus Operandi - The scam involved the diversion of government funds intended for fixed deposits, which were allegedly siphoned off without authorization through multiple shell entities, including Swastik Desh Projects Pvt Ltd [2][5]. - Investigators revealed that embezzled funds were routed through bank accounts of jewellers to create a facade of gold purchases via bogus billing [6][11]. Group 3: Key Individuals and Entities - Ribhav Rishi, a former IDFC First Bank employee, is accused of using several shell companies to misappropriate funds, with some proceeds transferred to his and his wife's bank accounts [7][11]. - Vikram Wadhwa, a hotelier and real estate developer, allegedly received proceeds of crime directly into his accounts before transferring them to real estate firms, and he has been absconding since the fraud was uncovered [8][9]. Group 4: Evidence and Ongoing Investigations - During the searches, over 90 bank accounts were frozen, and incriminating digital and documentary evidence was seized, indicating a complex network of financial misconduct [11][12]. - Further investigations are ongoing, with evidence linking substantial funds routed through an entity named Chandigarh Mega Store also being uncovered [10][11].