Chandigarh: The Enforcement Directorate (ED) has arrested Rajan Singh Katodiah, partner of Chandigarh-based M/s Sawan Jewellers, in connection with the alleged Rs 645-crore IDFC First Bank scam involving the embezzlement of government funds from various departments of the Haryana government and the Chandigarh Administration, an agency statement said on Friday.
Katodiah was arrested by the ED’s Chandigarh Zonal Office-II on Thursday and produced before the Special Court under the Prevention of Money Laundering Act (PMLA), which granted the agency four days’ custody for further interrogation.
According to the ED, Katodiah was the active managing partner and sole operational in-charge of M/s Sawan Jewellers, located in Sector 35-C, Chandigarh.
The agency alleged that he entered into a criminal conspiracy with the prime accused, Ribhav Rishi, and others to misappropriate public funds.
Investigations revealed that between November 6, 2024, and February 18, 2026, bank accounts linked to M/s Sawan Jewellers received approximately Rs 332 crore from several shell and intermediary entities allegedly controlled by Rishi.
These entities included Capco Fintech Services, Swastik Desh Projects, RS Traders, Chandigarh Mega Store, SRR Planning Gurus Pvt Ltd, Vistamed Solutions, Maa Vaibhav Laxmi Interior, and Divya Arora, wife of Ribhav Rishi.
The ED alleged that Katodiah, through Sawan Jewellers, facilitated the placement and concealment of proceeds of crime generated through the fraud.
The agency claims the funds were subsequently layered through business transactions and integrated into the firm’s day-to-day operations to project them as legitimate assets.
The investigation further indicated a sharp increase in the jeweller’s bullion purchases after its association with Rishi, which, according to the ED, points to a prior understanding between the accused persons for laundering the illicit proceeds.
The agency said it had earlier arrested four other accused in the case for their alleged involvement in money laundering activities. Assets worth about Rs 225 crore, including movable and immovable properties, have also been attached, seized, or frozen as part of the investigation.
The ED has already filed a charge sheet against 14 accused persons before the Special PMLA Court in Panchkula.
Further investigation is underway.
–IANS–
