The Directorate of Enforcement (ED), Chandigarh Zonal Office, has arrested two former employees of IDFC First Bank — Ribhav Rishi and Abhay Kumar — in connection with an alleged ₹645 crore public funds embezzlement case under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to the ED, the arrests were made on May 11, 2026, as part of an ongoing money laundering investigation linked to the alleged diversion of funds from bank accounts belonging to the Haryana Government, Chandigarh UT Administration, and two private schools located in Chandigarh and Panchkula.
The agency said preliminary investigation has revealed that hundreds of crores were allegedly siphoned off through shell entities floated by the accused.
As per the ED statement:
- Ribhav Rishi allegedly created shell firms including M/s Capco Fintech Services and M/s R S Trader in the names of his personal assistant and driver.
- Abhay Kumar allegedly floated M/s Swastik Desh Projects using the names of his wife and brother-in-law.
Investigators claim these shell entities received large amounts of funds allegedly embezzled from various government department accounts maintained with IDFC First Bank. The funds were subsequently layered and diverted through multiple channels to conceal the money trail.
The ED said efforts are currently underway to trace the complete flow of funds, identify additional beneficiaries, and detect properties allegedly acquired using the proceeds of crime.
Following the arrests under Section 19 of the PMLA, the Special Court (PMLA) granted the ED 10 days of custodial remand of both accused till May 21, 2026.
