Chandigarh, Oct. 3 -- The jewellers raided by the Enforcement Directorate (ED) earlier this week had allegedly laundered Rs.95 crore of the proceeds from the alleged Rs.645-crore IDFC First Bank fraud by routing the money through shell entities and showing it as gold purchases, the agency said on Friday.

The ED said Rs.4 crore cash was seized and bank balances worth Rs.22 crore belonging to jewellers and associated entities were freezed during its recent searches at 14 premises across Chandigarh, Mohali and Panchkula. Incriminating documents and digital evidence were also seized.

According to the agency, the money allegedly embezzled from the accounts of Haryana government, Chandigarh municipal corporation (MC) and Chandigarh Renewal En...