The ED arrested Naresh Kumar, a former Haryana superintendent, in the IDFC Bank fraud case involving embezzlement of Rs 645 crore. He was arrested under the PMLA and is accused of receiving and laundering proceeds of the crime.
The Enforcement Directorate (ED) has arrested a former superintendent in the office of the Director, Development and Panchayat in Haryana, in connection with an ongoing investigation into the IDFC Bank fraud case. Naresh Kumar was arrested on June 10 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before a special PMLA court, which granted him four-day custody and ED custody till June 14.
ED Investigation Uncovers Major Fraud
ED said its investigation conducted so far revealed embezzlement of public funds amounting to Rs 645 crore from the bank accounts of Haryana Government, Chandigarh Union Territory administration, and two private schools based in Chandigarh and Panchkula, maintained with IDFC First Bank.
In a statement, ED said Vikram Wadhwa is one of the main accused who, in connivance with Ribhav Rishi, Abhay Kumar, bank officials and government officials, embezzled government funds.
Role of Arrested Superintendent
As per the agency, Naresh Kumar allegedly received funds directly from the Swastik Desh Project, a shell entity through which government money was siphoned off.
"It is revealed during investigation that besides receiving government funds directly in his bank accounts, Naresh Kumar also acted as a key middleman in the diversion of funds and played an active role in the acquisition and concealment of Proceeds of Crime generated in cash," it said.
Naresh Kumar has been instrumental in the generation, layering and concealment of Proceeds of Crime, and he received Proceeds of Crime amounting to Rs 1.20 crore in bank accounts of himself and his family member. In addition, ED said, a huge amount of cash generated from embezzled funds has also been delivered to him.
Money Laundering through Shell Companies
"In this fraud, various intermediary shell entities such as Capco Fintech Services, Swastik Desh projects, RS Traders, and SRR Planning Gurus Pvt Ltd have received embezzled funds directly from various accounts of government departments."
Thereafter, the ED said, embezzled funds were further layered through various bank accounts of the accused persons and entities related to them.
The federal agency said hundreds of crores of rupees have been transferred to various jewellers from these intermediary shell entities, and these jewellers have provided cash against these banking transactions.
"Ribhav Rishi alongwith his associates, further distributed cash amounts to various government officials, including Naresh Kumar. Efforts are ongoing to trace the complete money trail and identify other beneficiaries and properties acquired therefrom," said the agency.
Other Arrests in the Case
Earlier in this matter, Ribhav Rishi, Abhay Kumar, and Vikram Wadhwa were arrested by ED, and after remand, all the accused have been sent to judicial custody. (ANI)
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