The CBI has uncovered a modus operandi in which siphoned-off government funds, parked with private banks, were used to purchase gold through Sawan Jewellers.The gold was then converted into cash by being sold in the open market, and the proceeds were returned to mastermind Ribhav Rishi and his employees for further distribution among co-conspirators.In the Rs 657 crore bank scam, officials of IDFC First Bank and AU Small Finance Bank colluded with government officers, including Haryana IAS officers, to siphon off funds from eight Haryana government departments and two of the Chandigarh Administration.Also read: Rs 657-cr IDFC bank scam: Probe shifts to Haryana labour board; accounts officer, clerk heldAccording to the CBI papers, accessed by The Tribune, Rajan Singh Katodiah, who runs Sawan Jewelers in Chandigarh’s Sector 35, received government funds routed through shell entities floated by Ribhav Rishi. These include Swastik Desh Projects, Capco Fintech Services, RS Traders, SRR Planning Gurus, Vistamed Solutions and Maa Vaibhav Laxmi Interior.Ribhav Rishi was the branch manager of IDFC First Bank, Sector 32, Chandigarh, who anchored the fraud and continued with it after shifting to AU Small Finance Bank.As per the Sawan Jewellers’ chartered accountant, Rs 329.57 crore was received between November 6, 2024, and February 18, 2026, mainly from shell entities. This includes Rs 138 crore from Capcо Fintech, Rs 131 crore from Swastik Desh Projects, and Rs 45 crore from RS Traders.Also read: ‘Accused took Goa trips, bribes’: CBI court dismisses bail plea of 2 in Rs 657-crore bank scamAs per the plan, Katodiah will purchase gold from his suppliers and then issue invoices in the name of shell entities to complete the transactions. But Katodiah didn’t give gold to shell entities; he sold it in the open market, generated cash, and handed it over to Ribhav Rishi and his employees. Employees of Ribhav Rishi, like Rahul, Manish, and Amritpal deposed before CBI that they used to collect large sums of cash from the premises of Sawan Jewelers in Sector 35, Chandigarh. These employees were carriers.As per CBI’s papers, Arun Kumar Patel, an employee of Rajan Singh Katodiah, recorded that he collected gold bars from various jewelers on his employer’s instructions and also collected cash, over Rs 100 crore in cash from Shri Traders, Rs 50 crore from MB Gold Traders and Rs 5 crore from Laxman Traders, which was then handed over to Ribhav Rishi’s carriers, including Rahul Kumar, Manish Kumar, Gurpreet Singh and Amritpal Singh.During a CBI raid on these traders, 5,589 gm of unaccounted-for gold and Rs 54.20 lakh in cash were seized.Katodiah also generated fake GST invoices to lend legitimacy to the inflows.Wadhwa used to induce senior public servantsThe CBI has found that Vikram Wadhwa, a real estate businessman and proprietor of Hotel Landmark in Sector 22, Chandigarh, used to induce senior public servants of several departments for various favours, including the opening of bank accounts, the transfer of funds thereto and favouring IDFC First Bank at the policy level.He was one of the ultimate beneficiaries who converted the proceeds into immovable property, the CBI claimed.According to the CBI, Ribhav Rishi frequently visited Wadhwa’s office, hosted a grand birthday party for him, and invited senior officials there. This not only shows their close association but also their joint efforts to induce public servants, in furtherance of the conspiracy, claims the CBI.Wadhwa received Rs 4.57 crore from Ribhav Rishi’s carriers and Rs 33.25 crore through bank transfers via shell entities.He paid an advance of Rs 12 crore for a Shop-Cum-Office in Sector 22, Chandigarh, Rs 24.25 crore for a 2- kanal plot in Sector 33-C, Chandigarh, Rs 14.5 crore for 1-kanal house in Sector 21, Chandigarh, Rs 2.25 crore for a 1-acre farmhouse in Mullanpur (SAS Nagar), Rs 4 crore for 4,319 sq feet plot in Mullanpur (SAS Nagar). Besides, a plot in Industrial Area, Phase-1, Chandigarh, is also under investigation.