The Enforcement Directorate (ED), Chandigarh Zonal Office, has arrested Rajan Singh Katodiah, partner of M/s Sawan Jewellers, after producing him before the Special Court (PMLA) on October 22.The Special Court (PMLA), Panchkula, on Thursday granted the ED four-day custody of Katodiah in connection with the multi-crore IDFC First Bank scam involving the embezzlement of Rs 645 crore.Related News: IDFC First-AU Small Bank scam: CBI files chargesheet against 6 Haryana IAS officers, 13 othersRelated News: Chandigarh jewellers under CBI scanner as Rs 94 crore linked to Rs 657-crore IDFC First Bank scam; 4 arrestedKatodiah is the active managing partner in sole operational charge of M/s Sawan Jewellers, situated in the Sector 35-C Inner Market, Chandigarh.He allegedly entered into a criminal conspiracy with prime accused Ribhav Rishi and others to misappropriate government funds belonging to various departments of the Haryana Government and the Chandigarh Administration.An analysis of Sawan Jewellers’ bank account revealed receipts totalling approximately Rs 332 crore between November 6, 2024, and February 18, 2026, from shell and intermediary entities and individuals, including M/s Capco Fintech Services, M/s Swastik Desh Projects, M/s RS Traders, Chandigarh Mega Store, SRR Planning Gurus Pvt Ltd, Vistamed Solutions, Maa Vaibhav Laxmi Interior and Divya Arora, wife of Ribhav Rishi.Through his entity, M/s Sawan Jewellers, Katodiah allegedly assisted Ribhav Rishi in placing and concealing the proceeds of crime, the ED said.The ED added that the proceeds of crime were subsequently layered and used by him for day-to-day business activities, projecting them as untainted funds to commit the offence of money laundering.The ED also claimed that Sawan Jewellers’ bullion purchases increased drastically immediately after its association with Ribhav Rishi, the alleged mastermind of the fraud, indicating a prior meeting of minds.Earlier, the ED had arrested four accused in the same case for their alleged involvement in money laundering. The agency had also attached, seized and frozen movable and immovable assets worth approximately Rs 225 crore in connection with the investigation.The ED has also filed a prosecution complaint against 14 accused before the Special Court (PMLA), Panchkula.