New Delhi [India], September 29 (ANI): The Enforcement Directorate (ED) on Tuesday conducted searches at 14 premises across Chandigarh, Mohali and Panchkula in connection with its money laundering investigation into the alleged embezzlement of Rs 645 crore of public funds belonging to the Haryana government, Chandigarh Municipal Corporation and other government accounts.
ED's Chandigarh Zonal Office-II conducted the search operations following its ongoing investigation initiated under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, on the basis of an FIR registered by the Haryana Police in February 2026 concerning discrepancies in the balances of bank accounts of the Development and Panchayat Department, Haryana, maintained with IDFC First Bank and AU Small Finance Bank.
The searches covered various jewellers and their associated entities, including Malik Jewellers, KLG Jewels and its associate entities, MB Gold Traders, Sham Jewellers and Sunder Jewellers, besides Gourav Kansal, who allegedly acted as a middleman in routing and layering the proceeds of crime (PoC).
The searches have resulted in the recovery of further evidence relating to the routing, layering, concealment and projection of proceeds of crime through various entities and bank accounts. The documents and other material recovered during the searches are being examined.
Officials said ED's investigation has revealed that the allegedly embezzled public funds were routed and layered through the bank accounts of various jewellers and projected as business transactions. "These transactions were allegedly carried out in connivance with the accused persons to conceal and project the proceeds of crime as legitimate funds."
They said the investigation has further revealed that the jewellers were allegedly involved in laundering the proceeds of crime generated from the bank accounts of various departments of the Government of Haryana and the Chandigarh UT Administration.
"The proceeds of crime are also alleged to have been laundered by jewellers, which allegedly reached accused IAS officers and other government servants involved in the IDFC First Bank fraud," said the officials.
In this regard, the Central Bureau of Investigation (CBI) has filed a third chargesheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government servants in connection with the bank fraud case.
Earlier, in the same case, ED had arrested four accused persons for their alleged involvement in the offence of money laundering. The agency has also attached, seized and frozen movable and immovable assets worth approximately Rs 211 crores in connection with the investigation.
ED has further filed a Prosecution Complaint against 14 accused persons before the special PMLA court in Panchkula. (ANI)
ED raids 14 places in Chandigarh, Mohali and Panchkula in Rs 645 crore alleged embezzlement of public funds
