The Enforcement Directorate (ED) on Wednesday conducted extensive searches across 19 locations in connection with the Rs 590-crore fraud case related to government deposits at IDFC First Bank’s Chandigarh branch.
The raids were conducted in Haryana, and parts of the National Capital Region, sources said.
According to officials, the case involves alleged diversion of funds belonging to various Haryana government departments. The funds, which were meant to be placed in fixed deposits, were allegedly siphoned off by several accused persons, including ex-bank officials, business entities, and real estate operators for personal use.
The ED’s probe follows earlier complaints and forensic findings that pointed to discrepancies in the way government accounts were handled at the IDFC First Bank branch. “The searches are being carried out to trace the money trail and identify the proceeds of crime. Preliminary findings indicate large-scale diversion of public funds,” a source said.
Preliminary investigations have revealed that the embezzled amount was routed through a complex network of shell companies and fake business entities. “The funds were allegedly layered through multiple transactions and ultimately invested under the guise of gold purchases and real estate dealings,” the source said.
Officials also confirmed evidence of substantial cash withdrawals linked to the money trail. During the probe, several Chandigarh-based business establishments, jewellery traders, and property developers came under the ED scanner. “Among those named in the investigation is hotelier Vikram Wadhwa, who is believed to be absconding after the alleged scam came to light. Wadhwa is reported to have business interests in real estate projects across the Tricity region – Chandigarh, Mohali and ,” the source said.
