Chandigarh Jeweller Arrested in Major IDFC First Bank Gold Fraud Case

Rajan Katodia, owner of Sawan Jewellers in Chandigarh, was arrested on March 14 by the Haryana State Vigilance and Anti-Corruption Bureau after investigators determined that more than ₹250 crore had been funnelled into his firm's accounts from companies linked to the alleged fraud at IDFC First Bank's Chandigarh branch. The bank had earlier disclosed a ₹590 crore fraud involving certain employees and others at that branch, in accounts held by the Haryana government. Hindustan Times reported the figure as ₹597 crore; the two tallies have not been officially reconciled.

The ACB's statement, issued from Panchkula, described Katodia's role in explicit terms: "The accused falsely recorded the sale of gold items to these firms/companies in their books. The accused, Rajan, played a pivotal role in hatching the conspiracy right from the inception of the fraud and actively contributed to executing the crime as part of a premeditated plan." Preliminary investigation also found that Katodia provided cash conversion services to the prime accused, earning a hefty commission in return. The vigilance elaborated: "Accused issued bills in the name of these firms showing the sale of gold items but actually converted the amount so sent in his account in cash after deducting hefty commission for himself."

Investigators identified the funds as having arrived at Sawan Jewellers through entities including Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd, and Swastik Desh Project, all described as shell companies used to layer diverted government money. The funds behind those entities were linked to former IDFC First Bank staffers Ribhav Rishi and Abhay Kumar, along with Abhishek Singla and Swati Singla, who are named as partners of Swastik Desh Projects Pvt Ltd. Katodia and two Haryana government officials arrested the same day, Rajesh Sangwan, controller of finance and accounts at the Haryana State Agriculture Marketing Board, and Randhir Singh, controller of finance and accounts at the School Shiksha Pariyojna Parishad, were produced before a Panchkula court on Sunday and sent to four days' police remand.

The Enforcement Directorate's Chandigarh Zonal Office had conducted searches two days earlier, on March 12, covering premises linked to Rishi, Kumar, their family members, and several beneficiary entities including Capco Fintech Services, Maa Vaibhav Laxmi Interiors, and SRR Planning Gurus Pvt Ltd. Searches were also conducted at premises linked to Vikram Wadhwa, a 52-year-old Chandigarh-based hotelier and real estate developer described as a key conspirator, who had been evading investigators since the fraud surfaced on February 22. Wadhwa was ultimately intercepted at a hideout in Kharar, Mohali, and sent to five days' police remand to trace a money trail spanning more than 2,400 transactions. Documents related to real estate investments were seized during the searches, and evidence linked to fund diversion was also recovered from premises connected to Chandigarh Mega Store, whose partner Mohit Goyal was searched separately.

The Enforcement Directorate said the alleged modus operandi involved routing large sums of government money through Swastik Desh Projects Pvt Ltd, before channelling most of the funds through jewellers' bank accounts to fabricate the appearance of legitimate gold purchases. The fraud, investigators said, was carried out over roughly the past year with the help of former bank employees. Wadhwa had also used Klaita Jewellers and Capco Fintech Services as additional conduits alongside Sawan Jewellers.

Reports differed on the total arrest count: The Hindu and several other outlets described Katodia as the 12th person arrested in the case, while Indian Express reported that 14 persons had been arrested in total, a figure that includes the two finance officials. The State Vigilance and Anti-Corruption Bureau had not issued a consolidated tally reconciling those numbers in the reports reviewed. A separate Economic Times reference noted that IDFC First Bank had settled related claims at ₹645 crore, though that figure has not been confirmed by either the bank or the ACB in the context of the ongoing criminal investigation.