The Directorate of Enforcement (ED) has arrested real estate businessman Vikram Wadhwa under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the ongoing IDFC Bank fraud case. The ED has detected embezzlement of public funds amounting to Rs 645 crore from bank accounts of the Haryana government, Chandigarh administration, and two private schools in Chandigarh and Panchkula maintained with the bank.
Charges Against Wadhwa
According to the ED, Wadhwa is one of the main accused who allegedly embezzled government funds in connivance with Ribhav Rishi, Abhay Kumar, and certain bank and government officials. Sources said Wadhwa received proceeds of crime amounting to more than Rs 70 crore in his personal account, apart from other gains generated from the embezzled funds. He allegedly invested the money in various entities linked to him and purchased several immovable properties.
Role of Shell Entities
The case also involves multiple intermediary shell entities that received embezzled funds directly from government department accounts. These funds were subsequently layered through bank accounts of the accused and related entities. Investigations revealed that hundreds of crores were transferred to various jewellers from these shell entities, with cash provided against the banking transactions. Ribhav Rishi, along with his associates, allegedly distributed the cash to several government officials and businessmen, including Wadhwa.
Arrest and Custody
After arresting Wadhwa on May 29 under Section 19 of the PMLA, the special PMLA court granted the ED four days of custody till June 2. Earlier, the ED had arrested Ribhav Rishi and Abhay Kumar on May 11, and they were remanded in judicial custody.
