The Enforcement Directorate (ED) on Thursday sought a further four days’ custody of alleged 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) in Panchkula after completion of his 10-day remand.
The ED submitted that Rishi, while serving as branch manager at IDFC First Bank’s Sector 32 branch in Chandigarh, allegedly played a central role in the embezzlement and laundering of government funds through a network of shell entities and associates.
It stated that investigation under the PMLA revealed 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.
“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,” the ED said.
The agency further alleged that “Rishi supervised routing of proceeds of crime, controlled shell entity transactions, arranged cash deliveries and, along with family members, received around Rs 34.22 crore from entities involved in the alleged embezzlement.”
Rishi was in ED custody from May 11 to May 20. The agency told the court that interrogation had revealed key facts about the modus operandi of embezzlement.
“The accused was confronted with various transactions undertaken in the bank accounts of shell entities controlled by him. The role of different accused persons/individuals along with their culpability has also been unearthed in the interrogation,” the ED submitted before the court.
Seeking extension of custody, the ED argued that the case involves proceeds of crime worth Rs 645 crore and that tracing and quantification of funds is at a crucial stage, requiring further custodial interrogation.
“The quantification of proceeds of crime in the form of funds lying in the hands of numerous beneficiaries and utilization 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 several key facts, especially regarding fund movement, beneficiaries and co-conspirators, are within the accused’s personal knowledge.
The hearing on the remand was ongoing till the filing of this report.
