Sawan Jewellers Partner Held in Rs 645 Crore IDFC Bank Case

In a major development in the Rs 645 crore IDFC First Bank scam, the Enforcement Directorate has arrested Rajan Singh Katodia, an active managing partner of M/s Sawan Jewellers based in Chandigarh. The ED said in a statement on Friday that the probe involves embezzlement of public funds from departments under the Haryana government and the Chandigarh administration.

The ED's Chandigarh Zonal Office-II arrested Katodia on Thursday. A special court handling cases under the Prevention of Money Laundering Act then sanctioned four days of custody so that the agency can continue its interrogation.

The agency says Katodia was the firm's active managing partner and its sole person in charge of operations. The firm is situated in Sector 35-C, Chandigarh. ED alleges that Katodia joined hands with the main accused, Ribhav Rishi, and others in a criminal plot to misuse public money.

According to the agency, bank accounts connected with the jewellery firm received about Rs 332 crore between November 6, 2024, and February 18, 2026. These funds, the ED claims, came from multiple fake and middleman companies allegedly controlled by Rishi. The entities named in the probe include Capco Fintech Services, Swastik Desh Projects, RS Traders, Chandigarh Mega Store, SRR Planning Gurus Private Limited, Vistamed Solutions, Maa Vaibhav Lakshmi Interior, and a firm linked to Divya Arora, wife of Rishi.

ED has alleged that Katodia helped conceal and place criminal proceeds through Sawan Jewellers. The money was later routed through several business transactions and absorbed into day-to-day operations of the company, making it look like legitimate wealth.

The investigation also points to a steep increase in gold purchases after the firm developed a relationship with Rishi. Officials say this suggests a prior agreement among the accused to launder illegal earnings.

Earlier, four other accused had been arrested in the case over their alleged role in money laundering. Movable and immovable assets worth about Rs 225 crore have been attached, seized or frozen so far.

The ED has submitted a chargesheet naming 14 accused before the special PMLA court in Panchkula, and the probe remains open.