ED arrests Vikram Wadhwa in ₹645 crore IDFC First Bank fraud case
Synopsis
A ₹645 crore fraud involving government funds from Haryana and Chandigarh — routed through shell companies, converted to cash via jewellers, and allegedly distributed among officials and businessmen — has now claimed its third arrest. Real estate businessman Vikram Wadhwa, who allegedly pocketed over ₹70 crore, is the latest to be taken into ED custody as investigators close in on the full network.
Key Takeaways
The ED arrested real estate businessman Vikram Wadhwa on 29 May 2025 under the PMLA in the ₹645 crore IDFC First Bank fraud case.
The alleged fraud involved embezzlement of public funds from accounts of the Haryana government , Chandigarh UT Administration , and two private schools.
Wadhwa allegedly received more than ₹70 crore in diverted funds directly into his personal bank account.
Shell entities including M/s Capco Fintech Services and M/s Swastik Desh Projects were allegedly used to layer the proceeds of crime.
The Special PMLA Court granted the ED four days of custodial remand until 2 June .
Co-accused Ribhav Rishi and Abhay Kumar were arrested earlier on 11 May and are currently in judicial custody.
The Directorate of Enforcement (ED), Chandigarh Zonal Office, arrested real estate businessman Vikram Wadhwa on 29 May 2025 under the provisions of the Prevention of Money Laundering Act (PMLA) in connection with the alleged ₹645 crore fraud involving IDFC First Bank, according to an official statement released on Monday, 1 June. The case centres on the alleged embezzlement of public funds from accounts held by the Haryana government, the Chandigarh Union Territory Administration, and two private schools in Chandigarh and Panchkula.
Role of the Accused
According to investigators, Wadhwa is among the key accused in the case and allegedly acted in connivance with Ribhav Rishi, Abhay Kumar, and certain bank and government officials to siphon off public money. The ED alleged that Wadhwa received more than ₹70 crore of the diverted funds directly into his personal bank account, in addition to substantial cash amounts generated from the embezzled money.
Investigators further alleged that Wadhwa played a significant role in the generation, layering, and concealment of proceeds of crime. He reportedly invested these funds in several entities linked to him and acquired multiple immovable properties using the illegally obtained money.
Shell Entities and the Money Trail
The ED's probe has identified 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 — that allegedly received embezzled funds directly from government department accounts. The funds were then layered through multiple bank accounts operated by the accused and their associates in an attempt to obscure their origin.
Notably, investigators found that hundreds of crores were transferred from these shell entities to various jewellers, who allegedly provided cash in return — a classic hawala-style conversion route. According to the ED, Ribhav Rishi and his associates subsequently distributed this cash among government officials and businessmen, including Wadhwa.
Court Remand and Earlier Arrests
Following his arrest, Wadhwa was produced before the Special PMLA Court, which granted the ED four days of custodial remand until 2 June. Earlier in the case, the ED had arrested Ribhav Rishi and Abhay Kumar on 11 May; after 11 days of ED custody, both were remanded to judicial custody.
What Comes Next
The ED said efforts are ongoing to trace the complete money trail, identify all beneficiaries, and locate assets allegedly acquired through proceeds of crime. The investigation remains active, and further arrests cannot be ruled out as the agency maps the full network of accused individuals and entities.
Point of View
With public funds from a state government and a Union Territory administration routed through shell companies and converted to cash via jewellers before reaching private hands. The involvement of bank officials and government insiders, if proven, points to a systemic failure of internal controls at multiple institutional layers. The ED's sequenced arrests suggest a deliberate strategy to flip lower-level accused before reaching those higher up the chain. The real accountability question — which government officials received the cash and whether any political cover was involved — remains unanswered, and mainstream coverage has largely skirted it.
NationPress
12 Aug 2026
Frequently Asked Questions
Who is Vikram Wadhwa and why was he arrested?
Vikram Wadhwa is a real estate businessman arrested by the ED on 29 May 2025 under the PMLA in connection with the alleged ₹645 crore IDFC First Bank fraud. He is accused of receiving over ₹70 crore in embezzled public funds and investing proceeds of crime in properties and linked entities.
What is the ₹645 crore IDFC First Bank fraud case?
The case involves the alleged embezzlement of approximately ₹645 crore from bank accounts belonging to the Haryana government, the Chandigarh UT Administration, and two private schools maintained with IDFC First Bank. Funds were allegedly siphoned through shell entities, layered via multiple accounts, and converted to cash through jewellers.
Who else has been arrested in this case?
The ED had earlier arrested Ribhav Rishi and Abhay Kumar on 11 May 2025. After 11 days of ED custody, both were remanded to judicial custody. Vikram Wadhwa is the third arrest in the case.
What custodial remand did the court grant for Wadhwa?
The Special PMLA Court granted the ED four days of custodial remand for Vikram Wadhwa, with the remand period running until 2 June 2025.
What shell entities are linked to the alleged fraud?
Investigators identified M/s Capco Fintech Services, M/s Swastik Desh Projects, R.S. Traders, and M/s SRR Planning Gurus Pvt Ltd as intermediary shell entities that allegedly received embezzled funds directly from government department accounts before layering them further.
