IDFC First Bank fraud: Haryana ACB arrests jeweller over Rs 250 crore routed to firm

Haryana State Vigilance and Anti-Corruption Bureau has arrested jeweller Rajan Katodia of Sawan Jewellers in the IDFC First Bank fraud investigation. Officials say more than Rs 250 crore was routed to his firm from entities linked to the accused. The case relates to a disclosed Rs 590 crore fraud at the bank’s Chandigarh branch.

Haryana State Vigilance and Anti-Corruption Bureau ACB arrested jeweller Rajan Katodia on Saturday in the IDFC First Bank fraud case. Officials said over Rs 250 crore moved to Katodia’s firm through linked companies. Katodia owns Sawan Jewellers. With this arrest, the total number of people held in the case rose to 12.

The case relates to private lender IDFC First Bank and its Chandigarh branch. The bank disclosed a Rs 590 crore fraud in a set of accounts held by the Haryana government. Investigators are checking the role of certain employees and other people. Officials said the probe is continuing and more questioning is expected.

IDFC First Bank fraud probe: Money trail linked to Sawan Jewellers

Investigators said Sawan Jewellers received more than Rs 250 crore from firms tied to the accused. These included entities linked with Ribhav Rishi, Abhay Kumar, Abhishek Singla and Swati Singla. Officials said money first left government accounts by illegal means. The funds were then transferred into these companies and later routed further.

The investigation also found transfers from entities such as Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd and Swastik Desh Project. Officials said these payments reached Sawan Jewellers through unauthorised channels. The statement added that other companies and firms were also part of the wider flow of funds. Teams are verifying records and bank transactions.

IDFC First Bank fraud case: Alleged cash conversion and false entries

Preliminary findings said Katodia allegedly provided cash conversion services to the main accused. Officials said a large commission was taken for this work. The statement said records showed false sales of gold items to the firms and companies. These entries were allegedly used to account for the movement of money.

Officials said Katodia had a key role from the start of the alleged fraud. The statement said, "The accused, Rajan, played a pivotal role in hatching the conspiracy right from the inception of the fraud and actively contributed to executing the crime as part of a premeditated plan, it said.\" Investigators are examining how the plan operated across accounts.

IDFC First Bank fraud investigation: Court production and earlier arrests

Officials said Katodia will be produced before a court in Panchkula. The agency plans to seek police remand for further interrogation. Investigators want to question Katodia about company links, payments, and cash handling. They are also checking documents tied to gold entries and other related business records.

Before Katodia’s arrest, 11 people had already been taken into custody in the case. Those arrested included six bank employees, four private individuals and one government official. Officials said the probe continues to track the full network behind the transfers. The case remains centred on the reported Rs 590 crore fraud.

With inputs from PTI