NEW DELHI: The Enforcement Directorate (ED) announced on Monday that it has made a third arrest related to its investigation into the alleged embezzlement of ₹645 crore from bank accounts associated with the Haryana government, Chandigarh administration, and two private schools held with IDFC First Bank.
On May 29, the ED detained real estate businessman Vikram Wadhwa under the Prevention of Money Laundering Act (PMLA), alleging he received over ₹70 crore in ill-gotten gains and played a pivotal role in the generation, layering, and concealment of these laundered funds, according to an official statement.
Following his arrest under Section 19 of the PMLA, Wadhwa was presented before a special PMLA court, which placed him in ED custody for four days until June 2.
The investigation has allegedly unearthed the embezzlement of public funds totaling ₹645 crore from the bank accounts of the Haryana government and Chandigarh UT Administration, as well as two private schools in Chandigarh and Panchkula.
The ED claims that Wadhwa collaborated with co-accused Ribhav Rishi, Abhay Kumar, as well as bank and government officials to siphon off these funds. “Vikram Wadhwa has been instrumental in the generation, layering, and concealment of illicit funds,” the ED stated.
Allegedly, he received over ₹70 crore in his personal account, along with significant cash derived from the embezzlement.
The ED reported that he subsequently invested these funds in various entities linked to him and acquired several pieces of real estate.
Numerous intermediary shell companies, including Capco Fintech Services, Swastik Desh Projects, R S Traders, and SRR Planning Gurus Pvt Ltd, are said to have received embezzled funds directly from government department accounts.
The embezzled funds were reportedly layered through various accounts belonging to accused individuals and related entities, the agency asserted.
Additionally, the probe has revealed that hundreds of crores were transferred from these intermediary entities to various jewellers, who allegedly provided cash in return for banking transactions.
According to the agency, “Ribhav Rishi and his associates distributed the cash to various government officials and businessmen, including Vikram Wadhwa.”
The ED is currently working to trace the complete money trail and identify other beneficiaries, as well as properties allegedly obtained from the proceeds of crime.
Wadhwa’s co-accused, Rishi and Kumar, were arrested on May 11. After 11 days of interrogation, both were subsequently placed in judicial custody.
