ED arrests Chandigarh jeweller’s partner Katodia in Rs 645-crore IDFC First Bank scam

The Enforcement Directorate (ED) has arrested Rajan Singh Katodia, a partner of Sawan Jewellers, in connection with the Rs 645 crore IDFC First Bank scam.

After his arrest on Thursday, Katodia was produced before a Special Court under the Prevention of Money Laundering Act (PMLA), which remanded him to four days of ED custody, according to the agency.

The ED alleged that Katodia, an active managing partner with sole operational charge of Sawan Jewellers at Sector 35C Inner Market in Chandigarh, entered into a criminal conspiracy with prime accused Ribhav Rishi, a former branch manager of the IDFC FIRST Bank, Sector 32 branch in Chandigarh, and others to misappropriate government funds belonging to various departments of the Haryana government and the Chandigarh Administration.

The ED said an analysis of Sawan Jewellers’ bank accounts showed receipt of approximately Rs 2,332 crore between November 6, 2024, and February 18, 2026.

According to the agency, the funds were received from shell and intermediary entities and individuals, including Capco Fintech Services, Swastik Desh Projects, RS Traders, Chandigarh Mega Store, SRR Planning Gurus Pvt. Ltd., Vistamed Solutions, Maa Vaibhav Laxmi Interior and Ribhav’s wife Divya Arora.

The agency said, “Rishi, the mastermind of the fraud, controlled and managed these entities and individuals.”

The ED alleged that Katodia, through Sawan Jewellers, assisted Rishi in placing and concealing the proceeds of crime. “These funds were subsequently layered and used in day-to-day business activities, projecting the proceeds of crime as untainted funds to facilitate money laundering,” the agency said.

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Layering involves passing illicit funds through a series of complex financial transactions to obscure their origin, making the money difficult to trace.

According to the ED, Sawan Jewellers’ bullion purchases increased sharply soon after its association with Rishi, which the agency cited as evidence, suggesting a prior understanding between the accused.

Earlier, the ED had arrested four other accused in the same case for their alleged involvement in money laundering. The agency has also attached, seized, and frozen movable and immovable assets worth approximately Rs 7,225 crore in connection with its investigation.

The ED has also filed a prosecution complaint against 14 accused persons before the Special PMLA Court in Panchkula.

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In March, the State Vigilance and Anti-Corruption Bureau (SV & ACB) had arrested Katodia and the two Haryana officials.

Later, the CBI also arrested him and others for interrogation in this connection.

The case was originally registered at the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB) police station in Panchkula on February 23, and was later transferred to the CBI.

The CBI subsequently re-registered the FIR under the provisions of the Prevention of Corruption Act and sections of the Bharatiya Nyaya Sanhita (BNS).