CHANDIGARH: The Enforcement Directorate (ED) on Tuesday conducted searches at 14 premises across Chandigarh, Mohali and Panchkula in connection with its money laundering investigation into the alleged embezzlement of Rs 645 crore of public funds belonging to the Haryana government, Chandigarh Municipal Corporation and other government accounts.ED’s Chandigarh Zonal Office-II conducted the searches as part of its ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002, news agency ANI reported.The probe was initiated on the basis of an FIR registered by Haryana Police in February 2026 concerning discrepancies in the balances of bank accounts of the development and panchayat department, Haryana, maintained with IDFC First Bank and AU Small Finance Bank.The searches covered various jewellers and their associated entities, including Malik Jewellers, KLG Jewels and its associate entities, MB Gold Traders, Sham Jewellers and Sunder Jewellers.The premises of Gourav Kansal, who allegedly acted as a middleman in routing and layering the proceeds of crime (PoC), were also searched.The searches led to the recovery of further evidence relating to the routing, layering, concealment and projection of proceeds of crime through various entities and bank accounts.Documents and other material recovered during the searches are being examined.According to officials, the ED’s investigation has revealed that the allegedly embezzled public funds were routed and layered through bank accounts of various jewellers and projected as business transactions, ANI reported.“These transactions were allegedly carried out in connivance with the accused persons to conceal and project the proceeds of crime as legitimate funds,” officials informed.They further said that the investigation revealed that the jewellers were allegedly involved in laundering proceeds of crime generated from bank accounts of various departments of the Haryana government and the Chandigarh UT Administration.“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 said.In this connection, the Central Bureau of Investigation (CBI) has filed a third chargesheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government servants in connection with the bank fraud case, ANI reported.Earlier, in the same case, the ED had arrested four accused persons for their alleged involvement in money laundering.The agency has also attached, seized and frozen movable and immovable assets worth approximately Rs 211 crore in connection with the investigation.The ED has further filed a prosecution complaint against 14 accused persons before the special PMLA court in Panchkula.(With agency inputs)
