Mohali: The Enforcement Directorate (ED) on Tuesday conducted searches at 14 locations in Chandigarh, Mohali and adjoining areas as part of its investigation into the alleged diversion and layering of funds in the Rs 650-crore bank fraud case involving IDFC First Bank.Sources in ED said that The searches were carried out at premises linked to several jewellers and other persons, with the agency examining documents, account records and other material. Several jewellers and persons connected with the transactions were also reportedly questioned.The ED probe follows an FIR registered by the Haryana Police in February 2026 into alleged irregularities involving accounts of the Development and Panchayats Department maintained with IDFC First Bank and AU Small Finance Bank.During the investigation, the names of several jewellers and entities in Chandigarh, Mohali and Panchkula have reportedly surfaced. The agency is examining whether funds allegedly diverted from government accounts were routed through different bank accounts and entities before being layered through jewellers’ accounts to conceal their source.Sources in ED said that Searches were carried out at premises linked to Malik Jewellers, KLG Jewels, M B Gold Traders, Sham Jewellers and Sundar Jewellers, besides those linked to alleged middleman Gaurav Kansal. The ED is probing the accounts that allegedly received the proceeds and whether the transactions were shown as genuine business dealings.The agency is also examining whether the alleged diversion involved funds belonging to departments other than the Haryana Development and Panchayats Department, including government funds of the Chandigarh administration, said the sources. The possible flow of the allegedly diverted money to government officials, including IAS officers, is also under investigation.The CBI is separately investigating the alleged bank fraud and is expected to file its third chargesheet in the case. Sources said six Haryana-cadre IAS officers are among those named as accused in the CBI investigation. The ED has so far attached or seized assets worth around Rs 211 crore in connection with the case, according to sources.The ED has not issued a detailed statement on Tuesday’s searches. The investigation into the alleged fictitious transactions, movement of funds and their subsequent layering is continuing.BOX | ED action at TDI in Mohali continues for second dayThe ED’s action in Mohali continued for the second consecutive day. On Monday, around 15 agency officials searched premises at TDI City and examined records related to Change of Land Use (CLU) and alleged financial irregularities.On Tuesday, the agency also reportedly conducted searches at Mohali City Centre. Builders and their associates are being questioned as part of the ongoing probe, sources said.The back-to-back searches have brought real estate transactions and their alleged financial links under the agency’s scanner.
