ED Arrests Real Estate Tycoon Vikram Wadhwa in Rs 645 Crore Fraud Case

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 a significant fraud case. The agency made the arrest on May 29, 2023, in relation to 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, all maintained with IDFC First Bank.

According to the ED, Wadhwa is one of the primary accused individuals who, in collusion with Ribhav Rishi, Abhay Kumar, bank officials, and government officials, embezzled government funds. Wadhwa played a crucial role in the generation, layering, and concealment of Proceeds of Crime. He received Proceeds of Crime amounting to more than Rs 70 crore in his personal account and also received a substantial amount of cash generated from the embezzled funds. Wadhwa further invested these Proceeds of Crime in various entities related to him and purchased several immovable properties using the embezzled funds.

In this fraud, various intermediary shell entities, including Capco Fintech Services, Swastik Desh Projects, RS Traders, and SRR Planning Gurus Pvt Ltd, received embezzled funds directly from various accounts of the government department. Subsequently, the embezzled funds were further layered through various bank accounts of the accused persons and entities related to them. During the investigation, it was revealed that hundreds of crores of rupees were transferred to various jewelers from these intermediary shell entities. These jewelers provided cash against these banking transactions, and Ribhav Rishi, along with his associates, further distributed the said cash amount to various government officials and businessmen, including Vikram Wadhwa.

The ED is currently working to trace the complete money trail and identify other beneficiaries and properties acquired from the embezzled funds. After arresting Wadhwa on May 29 under Section 19 of PMLA, 2002, the special court (PMLA) granted four days of ED custody of the accused until June 2. Earlier in this matter, Ribhav Rishi and Abhay Kumar were arrested by the ED on May 11. After 11 days of remand, both have been sent to judicial custody.

This case highlights the intricate web of financial crimes and the collaboration between various stakeholders to embezzle and launder public funds. The ED's actions demonstrate the seriousness with which such financial crimes are being addressed, and the ongoing investigation is expected to uncover more details and lead to further arrests and recoveries.