The Enforcement Directorate (ED) has carried out searches at 14 locations across Chandigarh, Mohali and nearby areas as part of its investigation into an alleged ₹650 crore bank fraud involving the suspected diversion and movement of funds.
The searches reportedly covered premises associated with jewellers, businessmen and individuals allegedly connected with the financial transactions under investigation. Officials examined banking records, transaction-related documents and other financial material, while some people linked to the transactions were also questioned.
How the ₹650 Crore Investigation Began
The case traces back to an FIR registered by Haryana Police in February 2026. The investigation concerns bank accounts associated with the Haryana Development and Panchayats Department that were maintained with IDFC First Bank and AU Small Finance Bank.
As investigators followed the financial trail, several business entities and jewellers operating in Chandigarh, Mohali and Panchkula reportedly came under scrutiny.
The ED is examining allegations that money was diverted from government-linked accounts and subsequently moved through multiple accounts and entities. Investigators are also looking into whether some transactions were structured to make the movement of funds appear connected to legitimate business activity.
Jewellers and Businessmen Among Those Searched
According to details emerging from the investigation, searches were conducted at premises associated with Malik Jewellers, KLG Jewels, M B Gold Traders, Sham Jewellers and Sundar Jewellers.
Premises linked to alleged intermediary Gaurav Kansal were also reportedly searched.
The agency is attempting to establish the relationships between the individuals, businesses and bank accounts involved in the suspected transactions. Investigators are also examining whether the alleged diversion extended beyond the Haryana Development and Panchayats Department and involved funds connected with the Chandigarh administration or other government departments.
Another aspect under examination is whether any of the allegedly diverted money ultimately reached public officials, including IAS officers.
Separate CBI Investigation Into the Bank Fraud
The Central Bureau of Investigation (CBI) is separately investigating the alleged bank fraud.
Six Haryana-cadre IAS officers have reportedly been named as accused in the CBI case, with the agency working toward another chargesheet in the matter.
While the CBI investigation concerns the alleged bank fraud, the ED is concentrating particularly on the subsequent movement of money and the suspected use of multiple accounts and entities to conceal or disguise the origin of funds.
The ED has reportedly attached or seized assets valued at around ₹211 crore during its investigation so far.
The agency had not issued a detailed public statement on the latest searches at the time of the reported operation. Further examination of financial records and documents is expected to determine the direction of the investigation.
Why Mohali Real Estate Transactions Are Under Scrutiny
The ED's activity in Mohali has also extended into the real estate sector.
On the previous day, agency officials reportedly searched premises in TDI City and examined documents relating to Change of Land Use (CLU) permissions and alleged financial irregularities.
Searches were also reportedly conducted at Mohali City Centre. Builders and individuals associated with the development were questioned as investigators examined potential financial connections.
The real estate transactions are being studied alongside the suspected movement of funds to determine whether there are links between property-related dealings and the broader financial investigation.
Investigators Focus on the Money Trail
The central issue for investigators is to establish how the allegedly diverted money moved after leaving the original accounts.
Authorities are examining transactions involving multiple bank accounts, businesses and individuals to determine whether the transfers represented genuine commercial activity or were used to layer the funds.
The investigation also seeks to identify the ultimate recipients or beneficiaries of any money established to have been illegally diverted.
Such cases require detailed examination of banking records, ownership structures, transaction documents and links between entities. This type of review falls within the broader area of Financial Investigation, where transaction trails and financial relationships are examined to establish how funds moved between parties.
The latest searches indicate that the ₹650 crore investigation is now examining not only the original alleged bank transactions but also the wider network through which the money may have been transferred, layered or invested.