Full Breakdown
Enforcement Directorate raids jewellery premises over alleged Rs 645 crore Haryana fund laundering
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Core Event: Searches at 14 locations in Chandigarh, Mohali and Panchkula
On September 29, 2026, the Enforcement Directorate (ED) conducted searches at 14 premises spanning Chandigarh, Mohali (Punjab) and Panchkula (Haryana). The raids targeted jewellery shops and associated entities—including Malik Jewellers, KLG Jewels, MB Gold Traders, Sham Jewellers, Sunder Jewellers and the residence of alleged middleman Gourav Kansal. The operations were carried out by the ED’s Chandigarh Zonal Office-II under the Prevention of Money-Laundering Act, 2002.
Background & Context: FIR and alleged fund discrepancies
The investigation stems from a First Information Report (FIR) lodged by the Haryana Police in February 2026. The FIR flagged irregularities in the balances of bank accounts held by the Development and Panchayat Department of Haryana with IDFC First Bank and AU Small Finance Bank. Authorities allege that public funds belonging to the Haryana government, the Chandigarh Municipal Corporation and other government accounts were diverted, layered and projected as legitimate business transactions through the accounts of the identified jewellers.
Data & Statistics
- Alleged embezzled amount: Rs 645 crore (officials’ claim).
- Assets attached, seized or frozen: approximately Rs 211 crore.
- Premises searched: 14 across three cities.
- Jewellers/entities named: Malik Jewellers, KLG Jewels (and associates), MB Gold Traders, Sham Jewellers, Sunder Jewellers, and middleman Gourav Kansal.
- IAS officers named in the parallel CBI charge-sheet: six Haryana-cadre officers.
- Persons previously arrested by the ED in this case: four.
- Entities charged in the ED’s charge-sheet: 14.
Official Statements & Responses
ED officials stated that the “embezzled” public funds were routed and layered through the bank accounts of the listed jewellers and then projected as ordinary business transactions. The agency indicated that the seized documents and other material are being examined to trace the flow of the alleged proceeds.
The Central Bureau of Investigation (CBI) has filed its third charge-sheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government servants in connection with the IDFC First Bank fraud. The CBI’s filing follows the ED’s earlier arrest of four individuals and its attachment of assets worth roughly Rs 211 crore.
Verbatim Quotes
- “The proceeds of crime are also alleged to have been laundered by jewellers, which allegedly reached accused IAS officers and other government servants involved in the IDFC First Bank fraud,” — the officials
Conflicting Reports & Gaps
While most outlets report the alleged misappropriated sum as Rs 645 crore, two reports describe the case as involving Rs 650 crore. The discrepancy has not been clarified by the investigating agencies. Additionally, the precise role of the Chandigarh UT Administration’s accounts in the alleged laundering remains under investigation, with officials indicating that further examination of documents is ongoing.
What's Next
The CBI’s charge-sheet is pending adjudication before the Panchkula Special Court. The ED continues to examine the recovered material and has indicated that additional assets may be attached as the probe progresses. No further public statements have been issued by the agencies as of the date of the raids.