The Enforcement Directorate (ED) has arrested Rajan Singh Katodiah, the active managing partner of M/s Sawan Jewellers in Chandigarh, in connection with the alleged Rs 645 crore IDFC First Bank fraud, the agency said in a statement reported by Nation Press and Mirror Now. The ED alleges the case involves misappropriation of government funds belonging to various Haryana government departments and the Chandigarh Administration.

Katodiah was arrested by the ED's Chandigarh Zonal Office-II and produced before a special court under the Prevention of Money Laundering Act (PMLA), which granted the agency four days of custody for further questioning, reports said.

Source: Nation Press (ED statement)

Rs 645 croreAlleged IDFC First Bank fraud (ED allegation)
Rs 332 croreAllegedly received by Sawan Jewellers (ED allegation)
Rs 225 croreAssets attached so far, ED said
4 daysPMLA court custody granted to ED

What the ED alleges

According to the ED, Katodiah was the sole operational in-charge of Sawan Jewellers, located in Sector 35-C, Chandigarh, and allegedly conspired with the prime accused, Ribhav Rishi, and others to misuse public money. The agency alleges that between November 6, 2024, and February 18, 2026, bank accounts linked to the jewellery firm received around Rs 332 crore from several fake and intermediary entities allegedly controlled by Rishi.

Source: Mirror Now

The ED alleges Katodiah helped conceal and layer the proceeds of crime by routing them through the firm's business transactions so they appeared to be legitimate revenue, and that the firm's bullion purchases rose sharply after it established ties with Rishi. These are allegations by the investigating agency; they have not been proved in court, and the accused are entitled to present their defence.

The agency said assets worth Rs 225 crore in movable and immovable properties have been attached so far in the case, and a prosecution complaint has been filed against 14 accused entities, according to reports of the ED statement. Hindustan Times, via Inshorts, also reported the arrest, the Rs 332 crore figure and the four-day custody.

Source: Hindustan Times via Inshorts

The ED said its investigation is continuing to trace the full money trail and identify other beneficiaries. Awaaz Punjab will update this story if the accused or the bank issue a statement.