Rishi, 36, a resident of Sector 20, Panchkula, and Kumar, 38, a resident of Sector 63, Chandigarh, were arrested by the ED on May 11 under Section 19 of the Prevention of Money Laundering Act (PMLA). Both were earlier remanded in the ED custody from May 11 to May 20.Ribhav Rishi, a former branch manager of IDFC First Bank, Sector 32, Chandigarh, “played a central role” in the alleged laundering of Rs 645-crore government funds, while around Rs 203 crore diverted from government department accounts was transferred to a shell firm allegedly controlled by former relationship manager of the bank, Abhay Kumar, and routed to third parties, including jewellers, in exchange for cash, the Enforcement Directorate (ED) has claimed before a Special PMLA Court in Panchkula.Rishi, 36, a resident of Sector 20, Panchkula, and Kumar, 38, a resident of Sector 63, Chandigarh, were arrested by the ED on May 11 under Section 19 of the Prevention of Money Laundering Act (PMLA). Both were earlier remanded in the ED custody from May 11 to May 20.The Court of Additional District and Sessions Judge Vijayant Sehgal, Special PMLA Court, granted one-day ED remand of Rishi on Thursday, while Kumar was sent to judicial custody. While counsel Deepanshu Bansal appeared for Ribhav Rishi, advocates Shazad Singh and Yavneet Dhakla represented Kumar.The ED had sought extension of Rishi’s custody to four more days, but the court granted one-day remand. In Kumar’s case, the agency moved an application seeking his judicial custody for 14 days.In its application against Kumar, the ED alleged that he too was “one of the masterminds” of the fraud. The relationship manager, according to the ED, handled accounts of multiple Haryana government and Chandigarh Administration departments and misused his position to facilitate diversion of public funds.In its application against Rishi, filed under Section 187(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, read with Section 65 of the PMLA, the ED said the case involves “huge amount of proceeds of crime amounting to Rs 645 crore”.Detailing Rishi’s alleged role, the ED claimed that while serving as branch manager of IDFC First Bank’s Sector 32 branch, he created and controlled shell entities, including Capco Fintech Services, RS Traders and SRR Planning Gurus Private Limited, in the names of employees, drivers and relatives using their KYC documents.Story continues below this ad“These entities allegedly received hundreds of crores diverted from the Haryana government and Chandigarh Administration accounts,” the ED stated. It further alleged that the funds were layered through transfers to jewellers and third parties, against which cash was collected and distributed across the tricity area through Rishi’s employees and associates.The agency also alleged that Rishi supervised routing of proceeds of crime, controlled shell entity transactions, arranged cash deliveries and, along with his family members, received around Rs 34.22 crore from entities involved in the alleged embezzlement.In Kumar’s case, the ED alleged that even after resigning from the bank on June 10, 2025, he falsely projected himself as an authorised bank official and issued fabricated communications to conceal fraudulent transactions. The agency claimed that Kumar controlled and operated Swastik Desh Projects through his family members, and that the firm functioned as a shell entity for routing and layering proceeds of crime.According to the ED, approximately Rs 203 crore diverted from government department accounts was transferred to Swastik Desh Projects and subsequently routed to third parties, including jewellers, in exchange for cash. Kumar allegedly controlled all banking operations of the firm, coordinated movement of illicit funds and, along with his family members, received personal benefits of around Rs 11.22 crore from entities linked to the alleged embezzlement network.Story continues below this adSeeking further custody of Rishi, the ED submitted that he had been interrogated extensively from May 11 to May 20, during which “several material facts relating to the modus operandi of embezzlement in different bank accounts” were revealed. It said he was confronted with transactions in bank accounts of shell entities allegedly controlled by him and that the role of different accused persons had also been unearthed.The ED described Rishi as the “mastermind of the entire fraud” and said he possessed relevant information regarding movement of funds, beneficiaries and involvement of co-conspirators.For Kumar, the ED submitted that if judicial custody was not granted, there was a likelihood of him trying to obfuscate the trail of proceeds of crime and further mislead the investigation. It said his interrogation may be required at a later stage.The Special ED Court granted one-day custody of Rishi to the ED. Kumar was sent to judicial custody. Jagpreet Singh Sandhu is a Senior Correspondent at The Indian Express, based in Chandigarh. He is a veteran reporter with over a decade of experience, specializing in legal, crime, and environmental reporting across the tri-city area (Chandigarh, Mohali, and Panchkula). Professional Background Core Beat: He primarily covers the Punjab and Haryana High Court, District Courts, CBI Courts, and Consumer Commissions. His legal reporting is known for breaking down complex judgments and tracking long-standing criminal cases. Environmental Reporting: Jagpreet has become a key voice in reporting on the deteriorating air quality and weather patterns in the Punjab-Haryana region. Crime & Technology: He frequently reports on cybercrime, digital arrest scams, and the intersection of technology and law enforcement, such as the development of citizen-centric policing apps. Recent Notable Articles (Late 2025) His late 2025 coverage has focused on significant judicial verdicts, major financial scams, and public health concerns: 1. Legal & CBI Court Verdicts "12 years on, CBI court acquits Haryana judge, parents in wife’s death case" (Dec 17, 2025): Detailed coverage of the acquittal of a judicial officer in a high-profile dowry death case from 2013. "‘Wicked & evil mind’: Court gives man 30-year term for kidnapping, sexually assaulting 8-year-old" (Dec 16, 2025): A report on a stern judgment from a Chandigarh district court in a POCSO case. "Man acquitted in rape case after victim found ‘very happy’ in wedding reception" (Dec 9, 2025): Covering a unique legal observation regarding consensual relationships and age verification. 2. Investigative & Scams "CBI registers FIR in Rs 1.14-cr Patient Welfare Grant scam at PGIMER" (Dec 19, 2025): An exposé on how funds meant for poor patients were siphoned off through forged documents and a photocopy shop inside the PGIMER campus. "Month-long torture, Rs 85 lakh transfers: How ‘Innocence Certificate’ led to a ‘digital arrest’ of an elderly couple" (Dec 12, 2025): Detailing a sophisticated cyber fraud targeting senior citizens in Chandigarh. 3. Environment & Public Safety "Panchkula air turns ‘very poor’, fourth worst in country" (Dec 22, 2025): Reporting on the sudden spike in pollution levels in Panchkula compared to neighbouring cities. "Soon, you can snap that overspeeding car, and report to Chandigarh Police" (Dec 16, 2025): Breaking news on a new mobile application being developed to allow citizens to report traffic violations via geo-tagged photos. 4. Gangster Culture & Crime "City Beautiful in the crosshairs of gangsters" (Dec 14, 2025): A feature analysis of how Chandigarh has increasingly become a staging ground for extortion and rivalries between gangster modules. "Shooters wanted for Parry murder held by Delhi Police Special Cell" (Dec 18, 2025): Following the developments in a high-profile murder case in Chandigarh’s Sector 26. Signature Style Jagpreet is recognized for his tenacious follow-up on cold cases and his ability to report on courtroom drama with a focus on victim rights. His work often highlights administrative lapses, whether in the handling of patient welfare funds or the enforcement of environmental standards. ... Read MoreStay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:Enforcement Directorate (ED)Panchkula