Rs 203 crore diverted to shell firm, routed to jewellers: ED tells court in IDFC First Bank scam case

The Court of Additional District and Sessions Judge Vijayant Sehgal, Special PMLA Court, granted one-day ED remand of Rishi on Thursday, while Kumar was sent to judicial custody. While counsel Deepanshu Bansal appeared for Ribhav Rishi, advocates Shazad Singh and Yavneet Dhakla represented Kumar.

The ED had sought extension of Rishi’s custody to four more days, but the court granted one-day remand. In Kumar’s case, the agency moved an application seeking his judicial custody for 14 days.

In its application against Kumar, the ED alleged that he too was “one of the masterminds” of the fraud. The relationship manager, according to the ED, handled accounts of multiple Haryana government and Chandigarh Administration departments and misused his position to facilitate diversion of public funds.

In its application against Rishi, filed under Section 187(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, read with Section 65 of the PMLA, the ED said the case involves “huge amount of proceeds of crime amounting to Rs 645 crore”.

Detailing Rishi’s alleged role, the ED claimed that while serving as branch manager of IDFC First Bank’s Sector 32 branch, he created and controlled shell entities, including Capco Fintech Services, RS Traders and SRR Planning Gurus Private Limited, in the names of employees, drivers and relatives using their KYC documents.

“These entities allegedly received hundreds of crores diverted from the Haryana government and Chandigarh Administration accounts,” the ED stated. It further alleged that the funds were layered through transfers to jewellers and third parties, against which cash was collected and distributed across the tricity area through Rishi’s employees and associates.

The agency also alleged that Rishi supervised routing of proceeds of crime, controlled shell entity transactions, arranged cash deliveries and, along with his family members, received around Rs 34.22 crore from entities involved in the alleged embezzlement.

In Kumar’s case, the ED alleged that even after resigning from the bank on June 10, 2025, he falsely projected himself as an authorised bank official and issued fabricated communications to conceal fraudulent transactions. The agency claimed that Kumar controlled and operated Swastik Desh Projects through his family members, and that the firm functioned as a shell entity for routing and layering proceeds of crime.

According to the ED, approximately Rs 203 crore diverted from government department accounts was transferred to Swastik Desh Projects and subsequently routed to third parties, including jewellers, in exchange for cash. Kumar allegedly controlled all banking operations of the firm, coordinated movement of illicit funds and, along with his family members, received personal benefits of around Rs 11.22 crore from entities linked to the alleged embezzlement network.

Seeking further custody of Rishi, the ED submitted that he had been interrogated extensively from May 11 to May 20, during which “several material facts relating to the modus operandi of embezzlement in different bank accounts” were revealed. It said he was confronted with transactions in bank accounts of shell entities allegedly controlled by him and that the role of different accused persons had also been unearthed.

The ED described Rishi as the “mastermind of the entire fraud” and said he possessed relevant information regarding movement of funds, beneficiaries and involvement of co-conspirators.

For Kumar, the ED submitted that if judicial custody was not granted, there was a likelihood of him trying to obfuscate the trail of proceeds of crime and further mislead the investigation. It said his interrogation may be required at a later stage.

The Special ED Court granted one-day custody of Rishi to the ED. Kumar was sent to judicial custody.