ED freezes 90 bank accounts in ₹597 crore fraud linked to IDFC First Bank Option 3:

The Enforcement Directorate (ED) has conducted search operations at 19 locations across Chandigarh, Mohali, Panchkula, Gurugram and Bengaluru as part of its investigation into an alleged ₹597-crore fraud linked to IDFC First Bank. Authorities said more than 90 bank accounts have been frozen during the operation as investigators trace the diversion of public funds.

According to officials, the suspected fraud involves the misappropriation of government funds that were held in accounts maintained with the bank. The money was allegedly siphoned off instead of being retained in fixed deposits or official accounts belonging to government departments and municipal authorities.

The searches were conducted by the ED’s Chandigarh Zonal Office under provisions of the Prevention of Money Laundering Act (PMLA). Investigators said incriminating digital and documentary evidence was recovered during the raids, which are expected to help establish the flow of funds and identify the beneficiaries of the alleged fraud.

Preliminary findings suggest that the money was routed through a network of shell companies and business entities, including firms linked to real estate developers and jewellery businesses. Authorities believe these entities were used to layer and launder the proceeds of crime before the funds were invested or transferred further.

The case is linked to earlier investigations by the Haryana State Vigilance and Anti-Corruption Bureau, which registered an FIR in February after detecting discrepancies in government bank accounts. The probe indicated that funds from several government departments were allegedly transferred without authorisation into accounts controlled by fictitious firms.

Officials said several bank employees and private individuals are under investigation for their suspected role in facilitating the transactions. The wider probe has already led to multiple arrests as authorities attempt to unravel the full scale of the alleged fraud.

Investigators are now examining financial records, property transactions and digital devices seized during the raids to determine how the funds were diverted and whether additional beneficiaries were involved.

The ED said further action will depend on the findings of the ongoing investigation as authorities continue to track the money trail linked to the alleged bank fraud.