The arrest of a jeweller over the weekend brings the total number of arrests to 12 in a ₹597-crore banking fraud case involving the embezzlement of government funds from Haryana state departments routed through an IDFC First Bank branch in Chandigarh.
₹597-Crore Banking Fraud: Key Details
The Haryana State Vigilance and Anti-Corruption Bureau (ACB) arrested Rajan Katodia, owner of Sawan Jewellers, on Saturday after investigations revealed that more than ₹250 crore had been routed to his firm from companies linked to the prime accused.
- The fraud centers on IDFC First Bank’s Chandigarh branch, where funds from at least eight Haryana government departments were diverted.
- Funds were siphoned off through 12 accounts, 10 at IDFC First Bank and two at AU Small Finance Bank.
- Former bank employees Ribhav Rishi and Abhay Kumar are central to the operation, according to investigators.
The ACB stated that Katodia “played a pivotal role in hatching the conspiracy right from the inception of the fraud” and received a hefty commission. Sawan Jewellers received funds through entities such as Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd and Swastik Desh Project, identified as shell companies.
How the Fraud Worked
Funds belonging to at least eight Haryana government departments – including the panchayats department and the pollution control board – were intended to be parked as fixed deposits (FDs) at the IDFC First Bank branch in Sector 32, Chandigarh. Instead, the money was systematically siphoned off.
Investigations by the ACB and the Enforcement Directorate (ED) have found that Ribhav Rishi, who resigned from IDFC First Bank in June 2025, allegedly used his access to government accounts to divert funds into a web of shell entities, including Swastik Desh Projects Pvt Ltd.
From Caretaker to Tycoon: The Story of Vikram Wadhwa
A major breakthrough came with the arrest of Vikram Wadhwa, a 52-year-old Chandigarh-based hotelier and real estate developer, who had been evading law enforcement since the scam surfaced on February 22. Wadhwa was intercepted in Kharar, Mohali, and is currently in five-day police remand.
Wadhwa alleged that Ribhav Rishi proposed routing government funds through companies he controlled, assuring him that “reverse entries could be made into the government accounts whenever required.” Funds allegedly flowed into his real estate ventures in Chandigarh, Mohali and Kharar through entities including Prisma Residency LLP, Kinspire Realty LLP and Martell Buildwell LLP.
Wadhwa’s background reveals a significant rise in fortune. He began as a guesthouse caretaker in Chandigarh in the 1990s, earning a monthly salary of ₹1,500, before building a real estate empire and accumulating substantial assets, including properties in Sectors 33, 21 and 36 in Chandigarh and a farmhouse in New Chandigarh.
Wadhwa stated he had known Rakesh Kumar Rishi, father of Ribhav Rishi, for several years and was introduced to Ribhav by Rakesh.
Current Status of the Investigation
The Haryana ACB has arrested 12 individuals – six bank employees, four private individuals, one government official and the jeweller. Eleven of the accused are in judicial custody. Investigators suspect that some government functionaries may have acted as co-conspirators.
The investigation team has raided 16 locations, seizing over 25 electronic devices, six luxury vehicles, and identifying 10 properties suspected to have been acquired using proceeds of crime. The ED separately raided 19 premises on March 12, freezing over 100 bank accounts. A Special Investigation Team (SIT) under senior IPS officer Ganga Ram Punia is overseeing the probe.
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