The Central Bureau of Investigation (CBI) has detailed how siphoning of government funds in a Rs 657 crore scam involved purchasing gold through Sawan Jewellers in Chandigarh. The gold was then sold in the open market for cash, which was distributed among conspirators, according to CBI documents accessed by The Tribune.
Modus Operandi: Gold Purchase and Cash Conversion
Rajan Singh Katodiah, proprietor of Sawan Jewellers in Sector 35, Chandigarh, received Rs 329.57 crore between November 6, 2024, and February 18, 2026, primarily from shell entities linked to mastermind Ribhav Rishi. These entities included Capco Fintech Services (Rs 138 crore), Swastik Desh Projects (Rs 131 crore), and RS Traders (Rs 45 crore).
Katodiah purchased gold from suppliers, issued invoices to shell entities, but instead of delivering gold, sold it in the open market. The cash proceeds were handed over to Rishi and his employees, who acted as carriers. Employees Rahul, Manish, and Amritpal deposed before the CBI that they regularly collected large sums of cash from Sawan Jewellers' premises.
Role of IDFC First Bank and AU Small Finance Bank
Ribhav Rishi, initially branch manager of IDFC First Bank in Sector 32, Chandigarh, orchestrated the fraud and continued after moving to AU Small Finance Bank. Officials from both banks colluded with Haryana IAS officers and other government officials to siphon funds from eight Haryana government departments and two Chandigarh Administration departments.
Vikram Wadhwa's Involvement
Real estate businessman Vikram Wadhwa, proprietor of Hotel Landmark in Sector 22, Chandigarh, used his influence to induce senior public servants for opening bank accounts, transferring funds, and favoring IDFC First Bank at policy levels. The CBI claims Wadhwa was an ultimate beneficiary who converted proceeds into immovable property.
Rishi frequently visited Wadhwa's office and hosted a grand birthday party for him, inviting senior officials. Wadhwa received Rs 4.57 crore from Rishi's carriers and Rs 33.25 crore via bank transfers from shell entities.
Properties Purchased with Scam Proceeds
Wadhwa paid advances for multiple properties: Rs 12 crore for a shop-cum-office in Sector 22, Chandigarh; Rs 24.25 crore for a 2-kanal plot in Sector 33-C; Rs 14.5 crore for a 1-kanal house in Sector 21; Rs 2.25 crore for a 1-acre farmhouse in Mullanpur; and Rs 4 crore for a 4,319 sq ft plot in Mullanpur. A plot in Industrial Area, Phase-1, Chandigarh, is also under investigation.
CBI Raids and Seizures
During raids on traders involved, the CBI seized 5,589 grams of unaccounted gold and Rs 54.20 lakh in cash. Katodiah also generated fake GST invoices to legitimize inflows.
