IDFC First Bank Fraud: ED Reveals Shell Companies and Key Accused

The Enforcement Directorate (ED) has revealed significant details about a major fraud involving IDFC First Bank. According to the ED, the accused, including bank officials, real estate developers, and jewellers, connived to siphon off over Rs. 597 crore from the Haryana Government through IDFC First Bank in the last year.

ED initiated the investigation under the Prevention of Money Laundering Act (PMLA) based on an FIR registered by the State Vigilance and Anti-Corruption Bureau last month. The investigation uncovered a significant mismatch in the balances of the Development and Panchayat Department, Haryana, held with IDFC Bank and AU Small Finance Bank.

ED’s latest findings follow searches conducted at 19 locations across Chandigarh, Mohali, Panchkula, Gurgaon, and Bengaluru. More than 90 bank accounts have been frozen, and incriminating material, including digital and documentary evidence, has been seized.

In a press release, ED highlighted that a significant amount was siphoned off by one Vikram Wadhwa, a hotelier and real estate developer running various projects in Mohali. Vikram Wadhwa is alleged to have received the Proceeds of Crime in his bank account and then transferred the funds to various real estate concerns like Prisma Residency LLP, Kinspire Realty LLP, and Martell Buildwell LLP.

While Wadhwa continues to be absconding, senior officials stated that the Haryana Police’s Anti-Corruption Bureau, the state vigilance department, and the ED are actively searching for him. Raids are being conducted to nab him.

The scam was perpetuated over the last year, approximately, with the assistance of ex-bank employees. Ribhav Rishi, an ex-employee of IDFC First Bank, is accused of using various shell companies to siphon off bank funds. He resigned from IDFC First Bank in June 2025. Some of the Proceeds of Crime were allegedly dissipated to the bank accounts of Ribhav Rishi and his wife, Divya Arora.

Search operations have covered former bank employees Ribhav Rishi and Abhay Kumar, their family members, and beneficiary shell entities such as Swastik Desh Projects, Capco Fintech Services, Maa Vaibhav Laxmi Interiors, SRR Planning Gurus Private Limited, and Sawan Jewellers, as well as real estate developers like Vikram Wadhwa and his business entities.

According to an ED official, the search operations revealed that public funds embezzled by the accused were routed and layered across multiple shell entities. The modus operandi involved the incorporation of a shell entity, Swastik Desh, through which huge government funds were initially diverted. The partners of Swastik Desh are Swati Singla and Abhishek Singla. Thereafter, the majority of the funds were channelised through bank accounts of jewellers to create an illusion of gold purchase through bogus billing.

All these entities were covered in the search, and documents related to real estate investment were also seized. It was found that the accused utilized the services of jewellers, including M/S Sawan Jewellers, M/S Capco Fintech Services (Bhupinder Singh), and M/S Klaita Jewellers, and shell entities such as Swastik Desh Projects, for siphoning off bank funds. Investigations also revealed that substantial funds received by the entity Chandigarh Mega Store were layered and siphoned off by the accused persons.

The search also included Mohit Goyal, a partner of Chandigarh Mega Store, and evidence related to siphoning funds was recovered. Searches were conducted at other entities like M/s Maa Vaibhav Laxmi Interiors and M/s SRR Planning Gurus Private Ltd, and it was found that these entities had directly received funds from government accounts and subsequently layered and dissipated to other shell entities, which are under investigation.