Fraud involving IDFC First Bank: Funds diverted via shell firms, paid to officials, court told in Chandigarh

According to the police, the accused, in connivance with smart city and CREST officials, allegedly created multiple shell entities to siphon off funds

The recently arrested former employees of IDFC First Bank — Ribhav Rishi, Abhay Kumar and Seema Dhiman — revealed during custodial interrogation that funds were siphoned off through a network of shell firms and routed to multiple beneficiaries, including officials of Smart City Project and Chandigarh Renewal Energy, Science and Technology Promotion Society (CREST), police informed a local court.

the accused disclosed that CREST accounts were opened in connivance with certain officials. (HT File)

During interrogation, the accused disclosed that they were working at IDFC First Bank, Sector 32, Chandigarh (2023–2025) and that CREST accounts were opened in connivance with certain officials. Large funds (approx ₹75 crore) lying in CREST accounts were targeted, officials said.

According to the police, the accused, in connivance with smart city and CREST officials, allegedly created multiple shell entities — CAPCO Fintech in the name of Bhupinder Singh and Sapna, wife of Hemraj (driver of Ribhav Rishi); RS Traders in the name of Hemraj and Swastik Desh Project in the name of Swati Singla and her brother — to siphon off funds. Swati Singla is wife of accused Abhay Kumar.

The siphoned funds were allegedly invested in real estate projects. This was facilitated through Vikram Wadhwa, linking the financial fraud to property investments, officials said.

Crucially, the accused allegedly sent forged and manipulated bank statements via official email IDs, masking the actual transactions and delaying detection of the fraud.

The interrogation also revealed alleged payments of crores of rupees to Nalini Malik, chief accounts officer, Smart City Project; Narender Pal Sharma, chief executive manager, Smart City Project & Municipal Corporation and Sukhwinder Singh (complainant) and his family members (as per accused disclosures). Police are verifying these claims as part of the investigation.