ED arrests two ex-IDFC Bank staff in Rs 645 crore laundering case

The Enforcement Directorate arrested two former IDFC First Bank employees, Ribhav Rishi and Abhay Kumar, in a Rs 645 crore money laundering case. They allegedly embezzled public funds and are now in ED custody until May 21.

The Enforcement Directorate (ED) has arrested two ex-employees of IDFC First Bank in connection with an ongoing money laundering investigation into the Rs 645 crore public fund embezzlement case.

ED's Chandigarh zonal office arrested Ribhav Rishi and Abhay Kumar, the two ex-employees of IDFC bank, on May 11 under the Prevention of Money Laundering Act (PMLA), 2002. After arresting both Ribhav and Abhay under Section 19 of PMLA, 2002, they were produced before a special PMLA court, which granted 10 days ED custody of both the accused till May 21.

Details of the Embezzlement

ED said the investigation conducted so far revealed embezzlement of public funds amounting to Rs 645 crore from the bank accounts of the Haryana government, Chandigarh Union Territory Administration, and two private schools based in Chandigarh and Panchkula, maintained with IDFC First Bank.

Modus Operandi with Shell Entities

ED said Ribhav floated shell entities Capco Fintech Services and RS Trader in the name of his personal assistant and driver. Likewise, the federal agency said, Abhay floated a shell entity, namely Swastik Desh Projects, in the name of his wife and brother-in-law. "These shell entities have received funds amounting to hundreds of crores directly embezzled from various accounts of the Government Department, and thereafter, such funds were further layered and siphoned off. Efforts are ongoing to trace the complete money trail and identify other beneficiaries and properties acquired therefrom," said the ED in a statement.

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