The Enforcement Directorate (ED) has arrested Rajan Singh Katodia, a partner of Sawan Jewellers, in connection with the Rs 645 crore IDFC First Bank scam.

After his arrest on Thursday, Katodia was produced before a Special Court under the Prevention of Money Laundering Act (PMLA), which remanded him to four days of ED custody, according to the agency.

The ED alleged that Katodia, an active managing partner with sole operational charge of Sawan Jewellers at Sector 35C Inner Market in Chandigarh , entered into a criminal conspiracy with prime accused Ribhav Rishi, a former branch manager of the IDFC FIRST Bank, Sector 32 branch in Chandigarh, and others to misappropriate government funds belonging to various departments of the Haryana government and the Chandigarh Administration.

The ED said an analysis of Sawan Jewellers’ bank accounts showed receipt of approximately Rs 2,332 crore between November 6, 2024, and February 18, 2026.

According to the agency, the funds were received from shell and intermediary…