₹657-Crore Bank Scam Probe: Lavish Spending, Properties and Parties Under ED Scanner

₹657-Crore Bank Scam Probe: Lavish Spending, Properties and Parties Under ED Scanner

Chandigarh : The investigation into the alleged ₹657-crore fund diversion involving IDFC First Bank and AU Small Finance Bank has uncovered a trail of suspected spending on properties, gold, luxury vehicles, hotels, travel and private parties, according to the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED). The agencies are examining how government funds allegedly moved through bank accounts and shell entities before being converted into assets and other forms of expenditure.

The case concerns money allegedly diverted from accounts belonging to eight Haryana government departments and two Chandigarh Administration entities. Investigators have put the total suspected diversion at around ₹657 crore. The CBI has alleged that bank officials and government personnel were involved in a wider conspiracy through which funds parked with private banks were transferred using fraudulent documents and transactions.

According to investigators, Ribhav Rishi, a former IDFC First Bank branch manager in Chandigarh, is alleged to have played a central role in the scheme. The CBI has accused him of coordinating fraudulent transactions and using forged approval emails and other documents to bypass banking controls. The agency has also alleged that money was routed through several entities and individuals before being used for personal benefit.

One part of the investigation focuses on real estate. The ED has alleged that suspected proceeds were used to acquire properties in Chandigarh, Panchkula and areas around New Chandigarh. In one investigation involving businessman Vikram Wadhwa, the agency said four properties worth more than ₹40 crore were purchased during 2025-26. These included residential and agricultural properties as well as plots.

The agencies have also examined purchases of gold. A CBI investigation reported by The Tribune found that approximately ₹329 crore of the suspected diverted money was allegedly used in transactions involving gold and other assets. Investigators said gold purchased through a jeweller could later be sold for cash, creating another route for moving the alleged proceeds.

Luxury spending is another major area under investigation. The CBI has alleged that some of the suspected funds were used for expensive hotels, foreign trips and private parties involving dancers and escorts. Investigators have also examined parties held at venues in Zirakpur and other locations. These allegations form part of the evidence being presented in the ongoing criminal proceedings.

The investigation has also identified allegations involving cash distributions and transactions through multiple accounts. According to the CBI, fraudulent fixed-deposit documents, fabricated approval communications and unauthorised debit transactions were allegedly used to move government funds. The agency has said that banking controls were bypassed in several high-value transactions.

The scale of the suspected fraud has led to multiple investigations, arrests and chargesheets. The CBI has filed chargesheets against several accused in connection with the Haryana government and Chandigarh-related cases. Senior government officials and banking personnel have also faced investigation in separate parts of the case.

The case is still before the courts, and allegations made by investigating agencies have yet to be established through a final judicial determination. The accused persons will have the opportunity to contest the allegations and evidence presented against them.

Investigators continue to trace the movement of the suspected funds, identify assets allegedly acquired with the money and determine the roles of individuals and organisations connected with the transactions. The continuing proceedings are expected to provide further details about how the alleged diversion was carried out and where the funds ultimately went.