ED raids jewellers in Rs 645-crore case in Punjab, seizes Rs 4.3 crore

According to the ED, the searches covered various jewellers and their associated entities. (File Photo)

The Enforcement Directorate (ED) said on Friday that it has seized Rs 4.30 crore in cash and frozen bank balances worth around Rs 22 crore lying in the bank accounts of jewellers and associates’ entities following searches at 14 premises across Chandigarh, Mohali and Panchkula in its money laundering probe into the alleged embezzlement of Rs 645 crore in public funds.

The ED recently conducted search operations in connection with its money laundering investigation into the embezzlement of funds belonging to the Haryana government, Chandigarh Municipal Corporation, and other government accounts. During the searches, various incriminating documents and digital evidence were also recovered and seized during the searches, the agency had said.

According to the ED, the searches covered various jewellers and their associated entities, including Malik Jewellers, KLG Jewels and its associate entities, M.B. Gold Traders, Sham Jewellers and Sunder Jewellers, besides Gourav Kansal who allegedly acted as a middleman in routing and layering the proceeds of crime (PoC).

The agency has claimed that the embezzled public funds were routed and layered through the bank accounts of various jewellers and projected as business transactions. These transactions were carried out in connivance with the accused persons to conceal and project the proceeds of crime as legitimate funds.

The ED said that the investigation revealed that Malik Jewellers, KLG Group (KLG Jewels, KLG Infra and KLG & Co.), M.B. Gold Traders, Sham Jewellers and Sunder Jewellers allegedly received Rs 58 crore, Rs 26 crore, Rs 5 crore, Rs 3.66 crore and Rs 3.15 crore (approximately) respectively, from intermediate shell entities purportedly floated by Ribhav Rishi, the mastermind in the case.

Further investigation has revealed that the jewellers were involved in laundering the proceeds of crime generated from the bank accounts of various departments of Haryana government and the Chandigarh Administration. The proceeds of crime have been laundered by jewellers which reached accused IAS officers and other government servants involved in the IDFC First Bank fraud. In this regard, the CBI has filed a third chargesheet before the Special Court in Panchkula, naming five Haryana-cadre IAS officers and a retired IAS officer and other government servants in connection with the bank fraud case.

Earlier, in the same case, the ED had arrested four accused persons for their alleged involvement in the offence of money laundering. The agency has also attached, seized and frozen movable and immovable assets worth around Rs 211 crore in connection with the investigation.

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The ED has further filed a prosecution complaint against 14 accused persons before the Special Court (PMLA), Panchkula. Further investigation is under progress, the ED added.

The ED investigation was initiated on the basis of an FIR registered by the Haryana Police in February 2026 concerning discrepancies in the balances of bank accounts of the Development and Panchayat Department, Haryana, maintained with IDFC First Bank and AU Small Finance Bank.