Chandigarh :
The Enforcement Directorate (ED), Chandigarh Zonal Office-II, has conducted search operations at 14 locations across Chandigarh, Mohali and Panchkula in connection with a money laundering investigation into the alleged diversion of around ₹645 crore in government funds.
According to the information available, the investigation relates to alleged irregularities involving government accounts, including accounts linked to the Haryana Government and public bodies. The probe was initiated following an FIR registered in February 2026 concerning discrepancies in accounts of the Development and Panchayats Department maintained with IDFC First Bank and AU Small Finance Bank. The ED has been investigating the alleged movement and layering of the funds through multiple bank accounts and entities.
The premises searched reportedly included locations associated with Malik Jewellers, KLG Jewels, Shyam Jewellers, MB Gold Traders, Sunder Jewellers and Gaurav Kansal. According to the agency’s allegations, funds allegedly diverted from government accounts were subsequently transferred to bank accounts of various jewellers and related entities.
The ED is also examining the alleged role of Gaurav Kansal, who is suspected by the agency of acting as an intermediary in transferring the funds through different bank accounts and routing them through multiple layers.
According to the investigation, the alleged transactions were presented as business dealings in an attempt to conceal the source of the funds. The agency is examining whether the money was routed through different accounts and entities with the alleged objective of projecting proceeds of crime as legitimate funds.
The investigation has also examined the alleged involvement of government officials and employees. A prosecution complaint has reportedly been filed before the Special PMLA Court in Panchkula against 14 accused individuals and entities. The ED has previously stated that four accused persons were arrested in the wider case and that assets worth substantial amounts have been attached, seized or frozen during the investigation.
The ED has said that the investigation is focused on tracing the complete money trail and identifying the beneficiaries and other persons allegedly involved in the movement and layering of the funds.
During the latest searches, the agency reportedly recovered documents and other material relating to the alleged routing, layering and concealment of the funds. The seized material is now being examined, and further investigation is underway.
