Chandigarh, June 11 (IANS) The ED arrested a former senior official of Haryana government in connection with an ongoing investigation into the Rs 645 crore IDFC Bank fraud under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, an official said on Thursday.

The Directorate of Enforcement (ED), Chandigarh Zonal Office, arrested Naresh Kumar, the then superintendent in the office of Director, Development and Panchayat, on Wednesday, the official said in a statement.

Investigation conducted so far revealed embezzlement of public funds amounting to Rs 645 Crore from the bank accounts of Haryana Government, Chandigarh UT Administration and two private schools based in Chandigarh and Panchkula maintained with IDFC first Bank.

Vikram Wadhwa is one of the main accused who, in connivance with Ribhav Rishi, Abhay Kumar, bank officials and government officials, embezzled government funds, said the federal probe agency.

Naresh Kumar allegedly received funds directly from the Swastik Desh Project, a shell entity through which government money was siphoned off, the ED said.

It was revealed during investigation that besides receiving government funds directly in his bank accounts, Naresh Kumar also acted as a key middleman in the diversion of funds and played active role in acquisition and concealment of Proceeds of Crime generated in cash, the ED said.

Naresh Kumar has been instrumental in generation, layering and concealment of Proceeds of Crime and he received Proceeds of Crime amounting to Rs 1.20 crore in bank accounts of himself and his family member, the ED said.

In addition, huge amounts of cash generated from embezzled fund have also been delivered to him, said the statement.

Earlier this month, the Central Bureau of Investigation (CBI) conducted searches at six premises in connection with the ongoing investigation into the over Rs 600 crore misappropriation fraud involving IDFC First Bank/AU Finance Bank, officials said.

The searches pertained to the siphoning of the government funds in eight departments of the Haryana government and two of Chandigarh, that is, the Municipal Corporation Chandigarh and CREST Chandigarh.

The officials said that these search operations were carried out at the premises located in Chandigarh, Panchkula, and Delhi-NCR, which include the residential premises of senior public servants of Haryana Cadre and Vipam Consultancy and its Director, in connection with irregularities committed and regarding receipt of proceeds of crime.

–IANS

rch/pgh