The Enforcement Directorate on Tuesday searched 14 locations across Chandigarh, Mohali and Panchkula as part of a 650-crore-rupee bank fraud investigation, officials said.

The searches are linked to alleged diversion of bank loans through shell companies and other entities, with investigators examining documents and digital records. The case involves suspected laundering of funds siphoned off from bank credit facilities, sources said.

In a separate but related development, the agency is also probing a 597-crore-rupee fraud linked to IDFC First Bank, involving Mantri Developers, individuals named Ribhav Rishi and Abhay Kumar, Sawan Jewellers and a network of shell entities, news agency ANI reported. The pattern of creating paper entities to route and layer funds is common to both cases, investigators believe.

The fresh action follows the ED's September 22 raids at 26 locations in connection with alleged irregularities in GMADA-linked projects and Tirupati Infraprojects, signalling a widening probe into real estate and infrastructure-linked financial irregularities in the Tricity region.

The agency is expected to issue summons to several individuals in the coming days. No arrests have been announced so far, and the investigation is continuing.