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The Enforcement Directorate (ED) has arrested Chandigarh-based real estate businessman Vikram Wadhwa in connection with its investigation into the alleged INR 645 crore IDFC First Bank fraud case involving the diversion of public funds from government-linked accounts. Wadhwa was arrested under provisions of the Prevention of Money Laundering Act (PMLA) and is being investigated for his alleged role in the generation, layering and concealment of proceeds of crime. The case relates to the suspected embezzlement of funds belonging to the Haryana government, the Chandigarh Administration and two private schools. Investigators allege that the money was routed through multiple accounts and shell entities before being converted into cash and other assets.
The Enforcement Directorate (ED) has arrested real estate businessman Vikram Wadhwa in connection with the alleged INR 645 crore IDFC First Bank fraud case, marking a significant development in an ongoing investigation into the suspected diversion and laundering of public funds linked to government accounts in Haryana and Chandigarh.
According to the ED, Wadhwa was taken into custody on May 29 under provisions of the Prevention of Money Laundering Act (PMLA) and was subsequently produced before a special court, which remanded him to ED custody for further questioning. The arrest forms part of a wider probe into alleged financial irregularities involving funds maintained with IDFC First Bank.
Investigators have alleged that approximately INR 645 crore was siphoned from bank accounts belonging to the Haryana government, the Chandigarh Union Territory Administration and two private educational institutions based in Chandigarh and Panchkula. The accounts were maintained with IDFC First Bank and are alleged to have been used as part of a broader network of unauthorised transactions and fund transfers.
The ED has identified Wadhwa as one of the key accused in the case. According to the agency, he allegedly acted in coordination with former banking officials and other individuals involved in the scheme to divert public funds through multiple channels. Investigators claim that the proceeds were layered through various bank accounts and associated entities in an attempt to conceal the origin of the funds.
The agency further alleged that more than INR 70 crore was traced directly to Wadhwa’s personal bank account, while additional amounts were allegedly generated and distributed in cash. According to the ED, substantial sums were routed through intermediary entities before being transferred to jewellers, who allegedly provided cash against banking transactions. Investigators believe the funds were subsequently distributed among several individuals, including businessmen and officials.
The fraud first came to light after discrepancies were reportedly detected in government-linked accounts maintained with private banks. Subsequent investigations by state agencies and enforcement authorities pointed towards forged financial instruments, unauthorised transfers and the use of shell entities for routing funds. Earlier in the case, former bank officials and other accused individuals, including Ribhav Rishi and Abhay Kumar, were arrested as part of the investigation.
The alleged fraud has drawn attention due to its scale and the involvement of public funds earmarked for government departments and institutional accounts. Investigative agencies are continuing efforts to trace the complete money trail, identify additional beneficiaries and determine whether assets were acquired using the alleged proceeds of crime.
The case has also raised concerns regarding banking oversight, internal controls and the management of government-linked deposits held with private financial institutions. Authorities have indicated that further investigation is underway and additional action may follow as the probe progresses.
Source - PTI
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