Chandigarh, October 2 (Daily Kiran) : The Enforcement Directorate (ED) has launched significant operations in Chandigarh related to a ₹645 crore embezzlement case involving government funds. On October 2, the ED’s Chandigarh Zonal Office-II conducted raids at 14 locations across Chandigarh, Mohali, and Panchkula, seizing ₹4.30 crore in cash and freezing approximately ₹22 crore in bank balances.
This investigation pertains to alleged misappropriation of public funds linked to the Haryana government, the Chandigarh Municipal Corporation, and other government accounts. The ED initiated its inquiry based on a First Information Report (FIR) filed by the Haryana Police in February 2026. The FIR highlighted discrepancies in the bank accounts of the Haryana Department of Development and Panchayati Raj at IDFC First Bank and AU Small Finance Bank.
The raids targeted several jewelers and their associated entities, including Malik Jewelers, KLG Jewels, and its affiliates, MB Gold Traders, Sham Jewelers, and Sundar Jewelers. The ED also acted against Gaurav Kansal, who is accused of facilitating the laundering of proceeds from the crime through various means.
According to the ED’s findings, the allegedly embezzled government funds were transferred through the bank accounts of different jewelers, disguised as legitimate business transactions. The agency claims that these transactions were designed to obscure the true origin of the illicit funds.
The investigation revealed that Malik Jewelers reportedly received around ₹58 crore, while KLG Group’s KLG Jewels, KLG Infra, and KLG & Company received ₹26 crore. Additionally, MB Gold Traders, Sham Jewelers, and Sundar Jewelers received ₹5 crore, ₹3.66 crore, and ₹3.15 crore, respectively.
The ED alleges that these amounts were funneled through shell companies created by the alleged mastermind, Ribhav Rishi. The agency asserts that the jewelers were involved in laundering criminal proceeds withdrawn from various departments of the Haryana government and the Chandigarh Union Territory Administration.
Furthermore, the ED contends that the laundered funds reached IAS officers and other government employees implicated in a fraud case involving IDFC First Bank. In connection with this case, the Central Bureau of Investigation (CBI) has filed a third charge sheet in a special court in Panchkula, naming six IAS officers and other government officials as accused.
During the recent raids, the ED seized ₹4.30 crore in cash, and approximately ₹22 crore in bank deposits were frozen. Various incriminating documents and digital evidence were also recovered. Previously, four individuals had already been arrested in relation to this money laundering case. The ED has attached, seized, or frozen assets worth around ₹211 crore so far and has filed a prosecution complaint against 14 accused in the special PMLA court in Panchkula. The investigation is ongoing.
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