ACB arrests jeweller in Rs 590cr bank fraud case

Times News NetworkPanchkula: The Haryana State Vigilance and Anti-Corruption Bureau (ACB) arrested Rajan Katodia, owner of Sawan Jewellers, in connection with the Rs 590 crore fraud linked to IDFC First Bank. His arrest on Saturday is the 12th in the case. Officials said after completing necessary legal formalities, he will be produced in court on Sunday, following which the ACB will seek his police remand for interrogation to uncover the larger network and determine the involvement of other individuals.According to the ACB, investigation showed that Sawan Jewellers allegedly received over Rs 250 crore from several companies and firms associated with accused individuals Ribhav Rishi, Abhay Kumar, Abhishek Singla, Swati Singla and others. Police alleged that the money flowed into these firms or shell companies after being illegally diverted from govt accounts.Preliminary findings further indicated that Katodia allegedly handled cash conversion for the main accused and received substantial commission for it. To justify the funds moving into his firm, he allegedly showed sales of gold items in the names of companies linked to the accused. Investigators also found that Sawan Jewellers had allegedly taken money through unauthorised channels from entities such as Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd and Swastik Desh Project, among others.The ACB said evidence collected so far suggests that Rajan Katodia played an important role from the early stages of the fraud. Officials claimed he was involved in planning the conspiracy and later helped in executing it according to a pre-decided strategy.The case gained momentum after the Haryana govt, on Feb 11, 2026, constituted a three-member committee to examine irregularities. Based on its inquiry, the govt directed the ACB to register an FIR, which was done on Feb 23. The committee's probe revealed that several cheques and debit notes were processed using forged signatures of former director general D K Behera, who had left the post in Oct 2025.One instance cited in the inquiry involved a cheque being honoured by the bank even though the amount in figures — Rs 2.50 crore — did not match the amount written in words. Bank records also showed that about Rs 46.5 crore was transferred from the IDFC First Bank account to an AU Small Finance Bank account. However, the ACB said required supporting documents from AU Bank were not provided in full despite repeated requests.Preliminary investigations indicated that funds were siphoned from multiple departments, including the Haryana State Pollution Control Board and the Panchkula Municipal Corporation. The suspects have been booked under the Prevention of Corruption Act and various sections of BNS. Officials said that unidentified bank staff and government officials are suspected to have been part of the conspiracy.Probe findings & money trailSawan Jewellers allegedly received over Rs 250 crore from firms linked to accused Ribhav Rishi, Abhay Kumar, Abhishek Singla, Swati Singla and others.Funds were allegedly illegally diverted from government accounts into shell companies.Rajan Katodia allegedly did cash conversion work for the main accused and earned hefty commission.Gold sales were allegedly shown in the names of companies linked to the accused to justify fund flow.Sawan Jewellers also allegedly received money through unauthorised channels from Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd, Swastik Desh Project, among others.Preliminary probe indicates funds siphoned from departments including the Haryana State Pollution Control Board and Municipal Corporation of Panchkula.BOX 2: Govt Action Haryana govt formed a 3-member committee on Feb 11, 2026; ACB registered FIR on Feb 23 after inquiry Committee found cheques and debit notes processed using forged signatures of former DGP D K Behera (retired Oct 2025) One cheque was honoured despite mismatch between figures (Rs 2.50 crore) and the amount in words Bank records showed Rs 46.56 crore transferred from IDFC First Bank to an AU Small Finance Bank account AU Bank did not fully furnish required supporting documents despite repeated communications, ACB said Suspects booked under the Prevention of Corruption Act and sections of the Bhartiya Nyaya Sanhita; unidentified bank staff and govt officials also suspected of involvementMSID:: 129575173 413 |