CHANDIGARH — The Enforcement Directorate has arrested real estate businessman Vikram Wadhwa in connection with an alleged 6.45 billion-rupee fraud involving IDFC First Bank accounts linked to government bodies and private schools, the agency said Monday.
Wadhwa was arrested May 29 by the ED’s Chandigarh Zonal Office under provisions of the Prevention of Money Laundering Act. A special PMLA court later granted the agency four days of custodial remand, until June 2.
According to the ED, its investigation has found alleged embezzlement of public funds totaling about 6.45 billion rupees from bank accounts maintained with IDFC First Bank. The accounts belonged to the Haryana government, the Chandigarh Union Territory Administration and two private schools based in Chandigarh and Panchkula.
The agency said Wadhwa is one of the key accused in the case and allegedly worked with Ribhav Rishi, Abhay Kumar, some bank officials and government officials to siphon off government funds.
Investigators alleged that Wadhwa played a major role in generating, layering and concealing proceeds of crime. The ED said he received more than 700 million rupees of diverted funds in his personal bank account, along with substantial cash generated from the alleged embezzlement.
The agency also alleged that Wadhwa invested proceeds of crime in several entities linked to him and acquired multiple immovable properties using illegally obtained funds.
The ED said several intermediary shell entities, including Capco Fintech Services, Swastik Desh Projects, R.S. Traders and SRR Planning Gurus Pvt. Ltd., allegedly received embezzled funds directly from accounts of various government departments.
Those funds were later allegedly layered through multiple bank accounts operated by the accused and entities linked to them to disguise their origin, the agency said.
Investigators also found that hundreds of crores of rupees were transferred from the shell entities to several jewelers, who allegedly provided cash in return for the banking transactions. According to the ED, Rishi and his associates later distributed the cash among government officials and businessmen, including Wadhwa.
The agency said it is working to trace the complete money trail, identify all beneficiaries and locate assets allegedly acquired through proceeds of crime.
The ED previously arrested Rishi and Kumar on May 11. After 11 days in ED custody, both were sent to judicial custody.
Further investigation is continuing. (Source: IANS)
