NEW DELHI: The Enforcement Directorate (ED) carried out raids at 19 places in connection with an alleged Rs 590 crore fraud involving Haryana government funds deposited in IDFC First Bank in Chandigarh, the agency said.
The funds were deposited by various agencies of the Haryana government in IDFC First Bank. These funds, instead of being deposited in FDs, were allegedly diverted by the accused.
“Based on the investigation carried out in this case, searches are being conducted in the various business entities which have given accommodation entries to the main accused persons, ex bank officials, certain beneficiaries of the scam and real estate agents where the proceeds of crime have been dissipated,” the agency said.
The federal agency said it found that huge funds have been transferred to various shell companies and minor jewellery entities. The funds were finally siphoned off under the guise of gold purchase and investment into the real estate sector. A significant amount of cash withdrawals has also been noticed in the money trial.
Chandigarh-based hotelier Vikram Wadhwa is absconding after news about the scam came to light. He is also involved in the construction of real estate projects in the Tricity.
The bank first disclosed the suspected fraud on February 22 after a preliminary internal assessment identified unauthorised and fraudulent activities carried out by certain employees at its Chandigarh branch, potentially in collusion with external individuals or entities.
The discrepancy came to light after a Haryana government department requested closure of its account and transfer of funds to another bank, during which the bank found a mismatch between its recorded balance and the amount reflected by the department.
Investigators identified 391 suspect transactions across approximately 170 accounts, totalling Rs 590 crore. Despite the probe, the bank immediately honoured 100 per cent of the principal and interest claimed by the relevant departments of the government of Haryana.
