The Enforcement Directorate (ED) has apprehended two former employees of IDFC First Bank in an ongoing money laundering probe linked to the Rs 645 crore public fund embezzlement case.
The Chandigarh zonal office of the Enforcement Directorate arrested Ribhav Rishi and Abhay Kumar on May 11 under the Prevention of Money Laundering Act (PMLA), 2002. After the arrest under Section 19 of PMLA, both were produced before a special court, which sent them to ED custody for 10 days till May 21.
According to the ED, the investigation so far has revealed misuse of public funds worth Rs 645 crore. The money was allegedly diverted from bank accounts of the Haryana government, Chandigarh Union Territory Administration, and two private schools in Chandigarh and Panchkula, all maintained with IDFC First Bank.
The agency said Ribhav created shell companies named Capco Fintech Services and RS Trader in the name of his personal assistant and driver. Similarly, Abhay is said to have formed another shell company called Swastik Desh Projects in the names of his wife and brother-in-law.
The ED stated that these shell firms received large amounts of money directly diverted from government-linked accounts. The funds were later layered and siphoned off further. The agency is now tracing the full money trail and identifying other beneficiaries and assets linked to the case.
Also read: https://newsarenaindia.com/states/rs-200-cr-idfc-bank-fraud-chandigarh-admn-seeks-cbi-inquiry/76166
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