ED arrests former Haryana official in Rs 645-crore IDFC Bank fraud case

The Directorate of Enforcement (ED) has arrested Naresh Kumar, the former superintendent of Haryana's Panchayat Department, in connection with the alleged Rs 645-crore IDFC Bank fraud and money laundering case.

The arrest was made on June 10 under the provisions of the Prevention of Money Laundering Act (PMLA), the agency said.

According to the ED, its investigation has uncovered the alleged embezzlement of around Rs 645 crore from bank accounts belonging to the Haryana government, the Chandigarh administration and two private schools.

The agency alleged that the fraud was carried out through a network involving key accused Vikram Wadhwa, Ribhav Rishi and Abhay Kumar, along with certain bank officials and government employees.

ED alleges use of shell firms to divert funds

Investigators claim that a shell entity named Swastik Desh Project was used to siphon off government funds and route them through multiple layers of transactions to conceal the source of the money.

The ED alleged that Naresh Kumar played a crucial role in facilitating the diversion of public funds and helping obscure the cash trail.

According to the agency, its probe found that around Rs 1.20 crore was transferred into bank accounts linked to Naresh Kumar and his family members.

Multiple entities under scanner

The ED said the proceeds of crime were allegedly routed through several shell companies and intermediary entities as part of a layered money-laundering operation.

Among the firms under investigation are Capco Fintech, Swastik Desh Project, RS Traders and SRR Planning Gurus Pvt Ltd.

The agency is examining transactions involving these entities to trace the movement of funds and identify additional beneficiaries.

Jewellery purchases, cash withdrawals under probe

The investigation has also revealed alleged transfers of hundreds of crores of rupees to jewellers, with the ED suspecting that cash was withdrawn against these transactions.

According to the agency, Ribhav Rishi and his associates allegedly arranged the movement of cash to various government officials after the funds were siphoned from institutional accounts.

The ED is now examining the flow of money across bank accounts, companies and individuals to establish the complete money trail.

Court sends accused to ED custody

Following his arrest, Naresh Kumar was produced before a Special PMLA Court, which remanded him to four days of ED custody until June 14.

The arrest marks the latest development in the case. Earlier, the agency had arrested Ribhav Rishi, Abhay Kumar and Vikram Wadhwa in connection with the alleged fraud.

The ED said further investigation is underway to identify other beneficiaries, trace assets allegedly acquired using the proceeds of crime and uncover the full extent of the money-laundering network.