Former Haryana Official Arrested in Rs 645 Crore IDFC First Bank Fraud Case by ED

The Directorate of Enforcement (ED) has arrested Naresh Kumar, former superintendent in the office of the Director, Development and Panchayat, Haryana, in connection with the alleged Rs 645-crore IDFC First Bank fraud case, claiming that he received proceeds of crime and played a key role in the diversion and concealment of embezzled government funds.

According to a statement issued by the ED on Thursday, Naresh Kumar was arrested on June 10 under provisions of the Prevention of Money Laundering Act (PMLA), 2002, by the agency’s Chandigarh Zonal Office.

The ED said its investigation has so far revealed the “embezzlement of public funds amounting to Rs 645 crore from the bank accounts of Haryana government, Chandigarh UT Administration and two private schools based in Chandigarh and Panchkula maintained with IDFC First Bank”.

The agency named Vikram Wadhwa as one of the main accused and alleged that he, “in connivance with Ribhav Rishi, Abhay Kumar, bank officials and government officials”, siphoned off government funds.

In its statement, the ED alleged that Naresh Kumar “received funds directly from M/s Swastik Desh Project, a shell entity through which government money was siphoned off”.

“It is revealed during (the) investigation that besides receiving government funds directly in his bank accounts, Naresh Kumar also acted as a key middleman in the diversion of funds and played (an) active role in acquisition and concealment of proceeds of crime generated in cash,” the agency said.

The ED further claimed that Naresh Kumar was “instrumental in generation, layering and concealment of proceeds of crime” and received proceeds of crime amounting to Rs 1.20 crore in the bank accounts of himself and his family members.

“In addition, huge amounts of cash generated from embezzled funds have also been delivered to him,” the agency alleged.

The agency alleged that the funds were subsequently layered through multiple bank accounts of accused persons and entities linked to them.

“It is revealed during (the) investigation that hundreds of crores of rupees have been transferred to various jewellers from these intermediary shell entities and these jewellers have provided cash against these banking transactions,” the ED said.

According to the agency, Ribhav Rishi and his associates allegedly distributed the cash to various government officials, including Naresh Kumar.

The ED said efforts were underway to trace the complete money trail and identify other beneficiaries and properties allegedly acquired from the proceeds of crime.

Following his arrest, Naresh Kumar was produced before a Special Court under the PMLA, which granted the ED four days custody till June 14.

The agency noted that Ribhav Rishi, Abhay Kumar and Vikram Wadhwa had earlier been arrested in the case and were subsequently sent to judicial custody after completion of their remand.