ED Searches 14 Premises in Chandigarh, Mohali, Panchkula Over Alleged ₹645 Crore Public Funds Embezzlement

October 2, 2026

Chandigarh: The Directorate of Enforcement (ED), Chandigarh Zonal Office-II, has conducted search operations at 14 premises across Chandigarh, Mohali and Panchkula as part of its money-laundering investigation into the alleged embezzlement of ₹645 crore of public funds belonging to the Haryana Government, Chandigarh Municipal Corporation and other government accounts.

The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The 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 Panchayats Department, Haryana, maintained with IDFC First Bank and AU Small Finance Bank.

ED Searches Jewellers and Associated Entities

According to the ED, the searches covered various jewellers and their associated entities, including Malik Jewellers, KLG Jewels and its associate entities, M/s MB Gold Traders, Sham Jewellers and Sunder Jewellers.

The premises of Gourav Kansal, who allegedly acted as a middleman in routing and layering the proceeds of crime, were also searched.

The ED said its investigation has revealed that the allegedly embezzled public funds were routed and layered through the bank accounts of various jewellers and projected as business transactions. The transactions were allegedly carried out in connivance with the accused persons to conceal the proceeds of crime and project them as legitimate funds.

Funds Allegedly Routed Through Shell Entities

The investigation has revealed that Malik Jewellers, KLG Group (KLG Jewels, KLG Infra and KLG & Co.), M.B. Gold Traders, M/s Sham Jewellers and M/s Sunder Jewellers allegedly received amounts of ₹58 crore, ₹26 crore, ₹3.66 crore and ₹3.15 crore, respectively, from intermediary shell entities allegedly floated by Ribhav Rishi, whom the ED has identified as the alleged mastermind in the case.

The ED further stated that the jewellers were allegedly involved in laundering proceeds of crime generated from the bank accounts of various departments of the Government of Haryana and the Chandigarh UT Administration.

The agency said the proceeds of crime were allegedly routed through jewellers and reached accused IAS officers and other government servants involved in the IDFC First Bank fraud. The CBI has filed a third chargesheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government servants in connection with the bank fraud case.

Cash, Bank Balances and Digital Evidence Seized

The search operations resulted in the recovery and seizure of cash amounting to ₹4.30 crore and the freezing of bank balances of approximately ₹22 crore, according to the ED.

The agency also seized various incriminating documents and digital evidence during the searches.

The ED said that earlier, in the same case, it had arrested four accused persons for their alleged involvement in the money-laundering offence. The agency had also attached, seized or frozen movable and immovable assets worth approximately ₹211 crore in connection with the investigation.

The ED has further filed a Prosecution Complaint against 14 accused persons before the Special Court (PMLA), Panchkula.

The investigation is continuing.