Chandigarh, May 12 The ED arrested two former employees of IDFC First Bank in connection with an ongoing investigation into the embezzlement of Rs 645 crore from the bank accounts of the Haryana government, the Chandigarh Administration, and others, an official said on Tuesday.
The Directorate of Enforcement (ED), Chandigarh Zonal Office, arrested Ribhav Rishi and Abhay Kumar on Monday under the provisions of the Prevention of Money Laundering Act (PMLA),2002, the official said.
After the arrest of the accused under Section 19 of PMLA, 2002, a Special Court (PMLA) here granted 10 days’ ED custody of both the accused till May 21, the official said in a statement.
The investigation conducted so far has revealed embezzlement of public funds amounting to Rs 645 crore from the bank accounts of the Haryana Government, the Chandigarh UT Administration, and two private schools based in Chandigarh and Panchkula, maintained with IDFC First Bank, the ED said.
The federal agency said that to misuse government funds, Ribhav Rishi floated shell entities, namely Capco Fintech Services and R S Trader, in the names of his personal assistant and driver.
Likewise, Abhay Kumar floated a shell entity, namely Swastik Desh Projects, in the names of his wife and brother-in-law to illegally divert depositors’ funds, the ED said.
These shell entities received funds amounting to hundreds of crores, directly embezzled from various government department accounts, and thereafter these funds were further layered and siphoned off, the ED said.
Efforts are ongoing to trace the complete money trail and identify other beneficiaries and properties acquired therefrom, it said.
Last month, the Haryana government suspended two IAS officers in connection with the IDFC First Bank scam.
Before suspension, Ram Kumar Singh, a 2012 batch officer, was the Additional CEO of Panchkula Metropolitan Development Authority, while 2012 batch officer Pardeep Kumar was the Director of State Transport and Special Secretary in the Transport Department.
Earlier, the ED conducted searches at 19 premises across Chandigarh, Mohali, Panchkula, Gurugram, and Bengaluru in connection with the scam.
During the searches, more than 90 bank accounts were frozen, and incriminating material, including digital and documentary evidence, was seized, the ED said in a statement.
--IANS
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