IDFC First Bank Scam: ED Freezes 90 Accounts in Rs 597 Cr Fraud

ED Cracks Down on Rs 597 Crore Financial Scam

The Enforcement Directorate (ED) has taken significant action in a large-scale financial fraud case involving the alleged embezzlement of Rs 597 crore in public funds from accounts held at IDFC First Bank. On March 12, the agency conducted extensive search operations across 19 locations spanning five cities: Chandigarh, Mohali, Panchkula, Gurgaon, and Bengaluru. This operation led to the freezing of more than 90 bank accounts and the seizure of crucial digital and documentary evidence. The investigation targets a complex network of former bank employees, shell companies, and business owners accused of illegally diverting government money.

The Anatomy of the Fraud

The case revolves around funds belonging to various government bodies, including the Haryana government and the Chandigarh Municipal Corporation. These funds were intended to be secured in fixed deposits with IDFC First Bank. However, investigators allege that the money was siphoned off without any authorization. The fraud, which reportedly unfolded over the past year, was orchestrated with the help of insiders at the bank. The initial trigger for the investigation was an FIR filed in February 2026 by the State Vigilance and Anti-Corruption Bureau in Panchkula after a significant mismatch was discovered in the balances of bank accounts belonging to Haryana's Development and Panchayat Department.

A Web of Shell Companies and Bogus Transactions

The ED's probe revealed a sophisticated modus operandi designed to launder the embezzled funds. The money was first diverted to a shell entity named Swastik Desh Projects Private Limited, managed by partners Swati Singla and Abhishek Singla. From there, the funds were layered through a complex web of transactions to obscure their origin. A significant portion of the money was channelled through the bank accounts of various jewellers, including Sawan Jewellers. These transactions were disguised as payments for gold purchases, supported by bogus billing to create a false trail and make the laundered money appear legitimate.

Key Individuals Under Investigation

The investigation has placed several individuals under scrutiny. A central figure is Ribhav Rishi, a former employee of IDFC First Bank who resigned in June 2025. The ED alleges that Rishi utilized multiple shell companies to divert the funds. A part of the illicit proceeds was also traced to bank accounts belonging to him and his wife, Divya Arora. Another key person of interest is Vikram Wadhwa, a hotelier and real estate developer based in Mohali. The ED claims Wadhwa received a substantial portion of the siphoned money directly into his accounts. These funds were subsequently transferred to real estate firms, including Prisma Residency LLP, Kinspire Realty LLP, and Martell Buildwell LLP. Wadhwa was not found at his premises during the raids and is reportedly absconding.

Details of the ED's Coordinated Raids

The search operations on March 12 were comprehensive, targeting the residences and offices of former bank employees Ribhav Rishi and Abhay Kumar, their family members, and the network of shell companies. The premises of entities like Capco Fintech Services, Maa Vaibhav Laxmi Interiors, and SRR Planning Gurus Private Limited were also searched. These firms are accused of receiving government funds directly before routing them further into the network. The ED also raided Chandigarh Mega Store, seizing evidence related to fund diversion from the premises of one of its partners, Mohit Goyal.

Summary of the Investigation

Implications for the Banking Sector

This incident highlights significant operational and reputational risks for banks handling large government accounts. The involvement of former employees underscores the critical need for robust internal controls, regular audits, and stringent oversight mechanisms to prevent insider fraud. For IDFC First Bank, the scam could impact investor confidence and lead to increased scrutiny from regulators. The case also serves as a reminder for the broader financial industry about the persistent threat of money laundering schemes that exploit loopholes in the banking system.

The Path Forward

With over 90 bank accounts frozen and a substantial amount of evidence collected, the ED's investigation is expected to intensify. The agency will now focus on analyzing the seized digital data and documents to trace the complete money trail and identify all beneficiaries of the scam. The search for the absconding accused, Vikram Wadhwa, remains a priority for law enforcement. As the probe continues under the PMLA, further details are likely to emerge, potentially implicating more individuals and entities in this complex financial fraud.