The Directorate of Enforcement (ED), Chandigarh Zonal Office-II, conducted searches at 14 premises across Chandigarh, Mohali and Panchkula as part of its money laundering investigation into the alleged embezzlement of Rs 645 crore from bank accounts linked to the Haryana government, the Chandigarh Municipal Corporation (MC) and other government accounts.The ED initiated an investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, on the basis of an FIR registered by the Haryana Police in February 2026 concerning discrepancies in the balances of bank accounts of the Development and Panchayat Department, Haryana, maintained with IDFC First Bank and AU Small Finance Bank.The searches covered various jewellers and their associated entities, including Malik Jewellers, KLG Jewels and its associate entities, M.B. Gold Traders, Sham Jewellers and Jattvibeder Jewellers, besides Gourav Kansal, who allegedly acted as a middleman in routing and layering the proceeds of crime (PoC).The investigation has revealed that the allegedly embezzled public funds were routed and layered through the bank accounts of various jewellers and projected as business transactions.These transactions were allegedly carried out in connivance with the accused persons to conceal and project the proceeds of crime as legitimate funds.The investigation has further revealed that the jewellers were allegedly involved in laundering the proceeds of crime generated from the bank accounts of various departments of the Government of Haryana and the Chandigarh UT Administration.The proceeds of crime are also alleged to have been laundered through the jewellers and subsequently reached accused IAS officers and other government servants allegedly involved in the IDFC First Bank fraud.In this regard, the CBI has filed a third chargesheet before the Special Court in Panchkula, naming six Haryana-cadre IAS officers and other government servants in connection with the bank fraud case.Earlier, in the same case, the ED had arrested four accused persons for their alleged involvement in money laundering. The agency has also attached, seized and frozen movable and immovable assets worth approximately Rs 211 crore in connection with the investigation.The ED has further filed a prosecution complaint against 14 accused persons before the Special Court (PMLA), Panchkula.The present searches resulted in the recovery of further evidence relating to the routing, layering, concealment and projection of proceeds of crime through various entities and bank accounts. The documents and other material recovered during the searches are being examined.