ED arrests Chandigarh jeweller’s partner Katodia in Rs 645-crore IDFC First Bank scam

The Enforcement Directorate (ED) has arrested the managing partner of a Chandigarh-based jewellery firm in connection with an alleged multi-crore bank fraud involving IDFC First Bank and AU Small Finance Bank. Investigators claim the total scam amounts to Rs 645 crore, stemming from the alleged embezzlement of government funds belonging to various Haryana government departments and the Chandigarh administration. According to the ED, the jeweller conspired with the prime accused to launder illicit funds through business accounts.

Investigators allege that the jeweller's firm received approximately Rs 332 crore between November 2024 and February 2026 from multiple shell companies, intermediary entities, and individuals linked to the prime mastermind. The funds were allegedly used to mastermind gold transactions worth around Rs 200 crore. The ED stated that these transactions helped place, conceal, and layer proceeds of crime, projecting them as legitimate business funds.

The special PMLA court in Panchkula granted the ED four days of custody following the arrest on October 22. Prior to this development, the agency had already arrested four other individuals, attached or frozen assets worth approximately Rs 225 crore, and filed a prosecution complaint against 14 accused before the special court.

Not yet reported: The exact total number of ultimate individual or institutional victims outside of the unnamed government departments is not fully detailed in the reports.