The Central Bureau of Investigation (CBI) has unearthed a large money laundering network in the alleged Rs 657 crore scam involving IDFC First Bank and AU Small Finance Bank. Investigation has revealed that more than Rs 329 crore, missing from government funds, was sent through shell companies to a jeweler in Chandigarh, where it was converted into cash through fake gold transactions and then distributed among the conspirators.
According to CBI, in this scam, officials of IDFC First Bank and AU Small Finance Bank colluded with IAS officers of Haryana Government to misappropriate funds of eight Haryana Government departments and two departments of Chandigarh Administration.
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Ribhav Rishi was described as the mastermind.
The investigating agency alleged that the mastermind of the scam was former IDFC First Bank branch manager Ribhav Rishi, who was continuing this activity after AU Small Finance Bank. The government funds were routed through shell companies, Swastik Desh Projects, Capco Fintech Services, RS Traders, SRR Planning Gurus, VistaMed Solutions and Maa Vaibhav Lakshmi Interiors.
played through jewelers
According to investigators, Razan Singh Katodia, owner of Sawan Jewelers, Sector 35, Chandigarh, received Rs 329.57 crore between November 2024 and February 2026, which mainly came from these shell firms. This included about Rs 138 crore from Capco Fintech, Rs 131 crore from Swastik Desh Projects and Rs 45 crore from RS Traders.
The CBI alleged that Katodia purchased gold from suppliers and issued invoices in the name of shell companies to make the transactions appear legitimate. But the gold was not delivered to the shell firms, but sold in the open market. The cash received from this was handed over to Ribhav Rishi and his associates.
Gold and cash recovered
The CBI recorded statements of Ribhav Rishi’s employees (including Rahul, Manish and Amritpal) stating that they regularly collected large sums in cash from the jeweller’s premises. Another employee of the jeweler said that he used to collect gold bars from suppliers and received more than Rs 155 crore in cash from bullion traders and handed it over to the courier of Ribhav Rishi. During the search, CBI recovered 5,589 grams of unaccounted gold and Rs 54.2 lakh in cash. The agency has also accused him of making fake GST invoices.
Bought high-value properties
Chandigarh real estate businessman and Hotel Landmark owner Vikram Wadhwa has also been named as a beneficiary in the investigation. According to CBI, they received Rs 4.57 crore in cash from associates of Ribhav Rishi and Rs 33.25 crore in bank transfers through shell companies. With this amount he purchased or made advance payments for high-value properties worth more than Rs 55 crore in Chandigarh and Mullanpur.
CBI alleges that Vikram Wadhwa developed relationships with senior public servants and encouraged them to favor IDFC First Bank. Investigation of a property in the industrial area of Chandigarh is going on.
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