Vikram Wadhwa arrested by ED in Rs 645 crore IDFC Bank fraud case

The ED arrested real estate businessman Vikram Wadhwa in a Rs 645 crore IDFC Bank fraud case. He is accused of embezzling public funds from government accounts and receiving over Rs 70 crore as proceeds of crime.

The Enforcement Directorate (ED) has arrested real estate businessman Vikram Wadhwa under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an ongoing investigation into IDFC Bank fraud, the agency said on Monday.

As per the agency, Wadhwa was arrested on May 29 in connection with the agency's ongoing investigation into the embezzlement of public funds amounting to Rs 645 crore from the bank accounts of the Haryana government, the Chandigarh Union Territory administration, and two private schools based in Chandigarh and Panchkula maintained with IDFC First Bank.

ED accused Wadhwa as one of the main accused who, in connivance with Ribhav Rishi, Abhay Kumar, bank officials and government officials, embezzled government funds.

Details of Wadhwa's Involvement

"Vikram Wadhwa has been instrumental in the generation, layering and concealment of Proceeds of Crime, and he received Proceeds of Crime amounting to more than Rs 70 crore in his personal account in addition to a huge amount of cash generated from embezzled funds. He further invested these Proceeds of Crime in various entities related to him and also purchased several immovable properties by utilising Proceeds of Crime," said the ED.

Modus Operandi of the Fraud

"In this fraud, various intermediary shell entities, Capco Fintech services, Swastik Desh projects, RS Traders, and SRR Planning Gurus Pvt Ltd have received embezzled funds directly from various accounts of the government Department. Thereafter, embezzled funds were further layered through various bank accounts of accused persons and entities related to them," said the ED.

"It is revealed during the investigation that hundreds of crores of rupees have been transferred to various Jewellers from these intermediary shell entities, and these jewellers have provided Cash against this banking transaction. Ribhav Rishi, along with his associates, further distributed the said Cash amount to various Govt Officials and businessmen, including Vikram Wadhwa."

Investigation and Other Arrests

ED said efforts are ongoing to trace the complete money trail and identify other beneficiaries and properties acquired therefrom.

After arresting Wadhwa on May 29 under Section 19 of PMLA, 2002, the special court (PMLA) granted four days ED custody of the accused till June 2.

Earlier in this matter, Ribhav Rishi and Abhay kumar were arrested by ED on May 11, and after 11 days of remand, both have been sent to judicial custody. (ANI)

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