The Enforcement Directorate (ED) has arrested Rajan Singh Katodiah, a partner in Chandigarh-based Sawan Jewellers, in connection with the alleged ₹ 645-crore IDFC First Bank scam involving the embezzlement of funds belonging to various departments of the Haryana government and the Chandigarh administration.
The ED’s Chandigarh zonal office-II arrested Katodiah after producing him before a special PMLA court on October 22. The court granted the agency four days of custody for further investigation.
Katodiah was the active managing partner of Sawan Jewellers, located in Sector 35-C inner market, and allegedly conspired with prime accused Ribhav Rishi and others to misappropriate government funds, according to the ED. The agency has also attached, seized and frozen movable and immovable assets worth approximately ₹ 225 crore in connection with the investigation. The ED has filed a prosecution complaint against 14 accused before the Panchkula court.
The entities and individuals included Capco Fintech Services, Swastik Desh Projects, RS Traders, Chandigarh Mega Store, SRR Planning Gurus Pvt Ltd, Vistamed Solutions, Maa Vaibhav Laxmi Interior and Divya Arora, Rishi’s wife, the ED said. The ED further claimed that Sawan Jewellers’ bullion purchases increased sharply after its association with Rishi, which, according to the agency, indicated a prior understanding between the accused. Further investigation is underway, officials said.
Earlier, the ED had arrested four other accused in the same case for their alleged involvement in money laundering.
