ED Raids 19 Sites In ₹597 Crore IDFC Fraud
The Enforcement Directorate (ED) has conducted search operations at 19 locations across Chandigarh, Mohali, Panchkula, Gurugram and Bengaluru in connection with an alleged ₹597-crore fraud linked to IDFC First Bank. Authorities also froze more than 90 bank accounts suspected to be connected to the diversion of funds as investigators attempt to trace the money trail and identify all individuals involved.
ED Probe Into IDFC First Bank Fraud
The investigation relates to alleged misappropriation of funds from government accounts maintained with IDFC First Bank. According to investigators, money deposited by several government departments was supposed to be placed in fixed deposits but was instead diverted through unauthorised transactions. The ED’s searches targeted premises linked to former bank officials, business associates and other entities believed to have facilitated the movement of funds.
Officials said the raids were conducted to collect documents, digital evidence and financial records that could help establish how the funds were siphoned off and layered through multiple transactions.
Over 90 Bank Accounts Frozen
As part of the crackdown, authorities froze more than 90 bank accounts believed to be connected with the alleged laundering of the proceeds of crime. Investigators suspect that large portions of the diverted money were routed through shell companies and smaller businesses before being withdrawn or invested in assets.
Freezing the accounts is expected to help prevent further movement of funds while investigators analyse financial transactions linked to the case.
Money Trail Linked To Shell Companies
Preliminary findings indicate that the diverted funds may have been routed through a network of shell firms, jewellery traders and real estate investments. Investigators are examining whether bank employees and external associates collaborated to create multiple layers of transactions in order to conceal the origin of the money.
The probe remains ongoing as enforcement agencies continue to track the money trail and identify additional beneficiaries of the alleged fraud. Authorities have indicated that further action may follow as the investigation progresses.
