The Enforcement Directorate (ED) on Thursday sought a further four days' custody of the mastermind, Ribhav Rishi, in the Rs 645 crore IDFC First Bank and AU Small Finance Bank scam.
Rishi was produced before the special court under the Prevention of Money Laundering Act (PMLA), Panchkula, after completion of his 10-day remand. However, the court granted a one-day remand.
ED submitted that Rishi while serving as branch manager of IDFC First Bank, Sector 32, Chandigarh branch, allegedly played a central role in the embezzlement and laundering of government funds through a network of shell entities and associates. It added that investigation under the PMLA revealed that he created and controlled shell entities, including Capco Fintech Services, RS Traders, and SRR Planning Gurus Private Ltd, in the names of employees, drivers, and relatives using their KYC documents.
These entities allegedly received hundreds of crores of rupees diverted from the Haryana Government and Chandigarh Administration accounts.
"The funds were subsequently layered through transfers to jewellers and third parties, against which cash was allegedly collected and distributed across the Tricity area (Chandigarh, Panchkula and Mohali) through his employees and associates," said ED.
"Investigations further revealed that Ribhav Rishi supervised routing of proceeds of crime, controlled shell entity transactions, arranged cash deliveries, and, along with his family members, received approximately Rs 34.22 crore from entities involved in the alleged embezzlement," claimed ED.
Rishi was interrogated in custody from May 11 to May 20. "During interrogation conducted to date, several material facts relating to the modus operandi of embezzlement in different bank accounts have been revealed. Secondly, the accused was confronted with various transactions undertaken in the bank accounts of shell entities controlled by him. Thirdly, the role of different accused persons/individuals along with their culpability has also been unearthed in the interrogation," submitted ED before the court.
For extension of Ribhav Rishi's remand, ED reasoned, "The case involves a huge amount of proceeds of crime amounting to Rs 645 crore. The quantification of proceeds of crime in the form of funds lying in the hands of numerous beneficiaries and utilisation thereof is underway at a very crucial stage, and the same will need further confrontation and questioning. Therefore, the extension of his remand for further custodial interrogation is extremely warranted."
It added that numerous significant facts and evidence are exclusively within his personal knowledge, particularly regarding the movement of funds, beneficiaries, and involvement of co-conspirators.