The Directorate of Enforcement (ED) conducted searches at 14 premises across Chandigarh, Mohali and Panchkula on September 29 as part of its money laundering investigation into the alleged embezzlement of ₹645 crore in public funds.The investigation concerns government funds belonging to the Haryana government, Chandigarh Municipal Corporation and other government accounts. The funds were allegedly diverted through bank accounts and subsequently moved through different entities.The searches were conducted by the ED's Chandigarh Zonal Office II as investigators continued examining the alleged movement and laundering of the funds.What is the ₹645 crore IDFC Bank case?The case relates to alleged fraudulent diversion of government funds maintained in bank accounts with IDFC First Bank and AU Small Finance Bank. The ED had earlier initiated its PMLA investigation based on an FIR registered by the Haryana State Vigilance and Anti-Corruption Bureau in February 2026.According to the ED's earlier findings, government money that was intended to remain as fixed deposits was allegedly diverted without authorisation. Investigators said the funds were subsequently routed through multiple accounts and entities.The ED's March 2026 search operation had covered 19 premises across Chandigarh, Mohali, Panchkula, Gurugram and Bengaluru. The agency said the investigation had identified former bank employees, shell entities, jewellers and real-estate interests in the alleged money trail.How was the alleged money routed?The ED said in its earlier investigation that government funds were initially diverted into accounts linked to shell entities. The agency alleged that the money was subsequently layered through multiple accounts and transactions to conceal its origin.One entity identified by the ED was Swastik Desh Projects Pvt Ltd. The agency said significant amounts were subsequently channelled through accounts connected with jewellers, with transactions allegedly structured to create the appearance of gold purchases through billing.The ED also identified real-estate entities and individuals as part of its investigation into the alleged proceeds of crime. Documents connected with real-estate investments were among the material examined during earlier searches.What action has the ED taken in the case?The ED has continued its investigation under the Prevention of Money Laundering Act (PMLA), 2002. Its official records state that a prosecution complaint has been filed before the Special Court (PMLA) against 14 accused persons and entities in the case.The agency has also said that properties with an aggregate value of ₹200.84 crore have been provisionally attached under the PMLA in connection with the alleged diversion of government funds. The attachment involves properties linked to several individuals and entities named in the investigation.The case has also been investigated by the Central Bureau of Investigation (CBI). Earlier reporting said the CBI put the alleged fraud figure at about ₹661 crore, while the ED's investigation has referred to ₹645 crore as the amount allegedly siphoned off.What happens next in the investigation?The latest searches are part of the continuing investigation into the alleged money trail and the people and entities connected with it. The ED is examining financial records, transactions and other material recovered during its operations.The agency's investigation is intended to establish how government funds were allegedly diverted, where the money was transferred and whether the transactions represent proceeds of crime under the PMLA.The September 29 searches in Chandigarh, Mohali and Panchkula add to the enforcement action already carried out in the case. Further developments will depend on the evidence recovered during the searches and subsequent investigation by the ED and other agencies.
