Chandigarh, October 23, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) has arrested Rajan Singh Katodiah, a partner in Chandigarh-based Sawan Jewellers, in connection with the alleged Rs 645-crore IDFC First Bank scam involving the suspected embezzlement of government funds belonging to various Haryana government departments and the Chandigarh Administration.
According to an ED statement issued on Friday, the agency’s Chandigarh Zonal Office-II arrested Katodiah on Thursday. He was subsequently produced before a Special Court under the Prevention of Money Laundering Act (PMLA), which granted the ED four days of custody for further interrogation.
The ED identified Katodiah as the active managing partner and sole operational in-charge of Sawan Jewellers, located in Sector 35-C, Chandigarh.
The agency has alleged that he conspired with the prime accused, Ribhav Rishi, and others to misappropriate public funds and launder the proceeds of the alleged fraud.
Investigators found that between November 6, 2024, and February 18, 2026, bank accounts linked to Sawan Jewellers received approximately Rs 332 crore from several shell companies and intermediary entities allegedly controlled by Rishi.
The entities named by the ED include Capco Fintech Services, Swastik Desh Projects, RS Traders, Chandigarh Mega Store, SRR Planning Gurus Pvt Ltd, Vistamed Solutions, Maa Vaibhav Laxmi Interior and Divya Arora, Rishi’s wife.
The agency alleges that Katodiah, through Sawan Jewellers, facilitated the placement and concealment of proceeds generated through the alleged fraud. The funds were reportedly routed through business transactions and incorporated into the firm’s routine operations to make them appear legitimate.
The investigation also indicated a sharp rise in the jeweller’s bullion purchases after its association with Rishi. According to the ED, this increase points to a possible prior understanding between the accused persons to launder the alleged illicit proceeds.
The agency said it had previously arrested four other accused in the case over their alleged involvement in money laundering. Assets worth approximately Rs 225 crore, including movable and immovable properties, have also been attached, seized or frozen during the investigation.
The ED has already filed a charge sheet against 14 accused before the Special PMLA Court in Panchkula.
Further investigation into the alleged scam is underway.
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