Chandigarh, June 1 (IANS) The Directorate of Enforcement (ED), Chandigarh Zonal Office, has arrested real estate businessman Vikram Wadhwa under the provisions of the PMLA in connection with its ongoing investigation into the alleged Rs 645 crore IDFC First Bank fraud case, an official statement said on Monday.

According to the ED, Wadhwa was arrested on May 29 under Section 19 of the PMLA.

The agency’s investigation has so far revealed the alleged embezzlement of public funds amounting to approximately Rs 645 crore from bank accounts belonging to the Haryana government, the Chandigarh Union Territory Administration, and two private schools based in Chandigarh and Panchkula that were maintained with IDFC First Bank.

The ED said Wadhwa is one of the key accused in the case and allegedly acted in connivance with Ribhav Rishi, Abhay Kumar, certain bank officials and government officials to siphon off government funds.

According to investigators, Wadhwa played a significant role in the generation, layering and concealment of the proceeds of crime. The agency alleged that he received more than Rs 70 crore of the diverted funds in his personal bank account, apart from substantial amounts of cash generated from the embezzled money.

The ED further said that Wadhwa invested the proceeds of crime in several entities linked to him and acquired multiple immovable properties using the illegally obtained funds.

The investigation has revealed that several intermediary shell entities, including M/s Capco Fintech Services, M/s Swastik Desh Projects, R.S. Traders and M/s SRR Planning Gurus Pvt Ltd, allegedly received embezzled funds directly from the accounts of various government departments.

The agency said the funds were subsequently layered through multiple bank accounts operated by the accused persons and entities associated with them in an attempt to disguise their origin.

During the probe, investigators also found that hundreds of crores of rupees were transferred from these shell entities to various jewellers, who allegedly provided cash in return for the banking transactions.

According to the ED, Ribhav Rishi and his associates subsequently distributed the cash among several government officials and businessmen, including Vikram Wadhwa.

The agency said efforts are underway to trace the complete money trail, identify all beneficiaries and locate assets allegedly acquired using the proceeds of crime.

Following his arrest, Wadhwa was produced before the Special PMLA Court, which granted the ED four days of custodial remand till June 2.

Earlier in the case, the ED had arrested Ribhav Rishi and Abhay Kumar on May 11. After 11 days of ED custody, both were sent to judicial custody.

Further investigation in the matter is underway.

–IANS

skp/