The directorate of enforcement (ED) has arrested two key accused in separate money laundering investigations involving the alleged embezzlement and diversion of public funds worth nearly ₹790 crore. The cases relate to a ₹645 crore fraud linked to IDFC First Bank and a ₹145 crore scam involving funds belonging to the municipal corporation of Panchkula.
In the first case, ED's Chandigarh Zonal Office arrested real estate businessman Vikram Wadhwa under the Prevention of Money Laundering Act (PMLA), 2002, in connection with its ongoing probe into the alleged siphoning of government funds maintained in accounts with IDFC First Bank.
According to ED, the investigation has uncovered the embezzlement of around ₹645 crore from bank accounts belonging to the Haryana government, the Chandigarh Union Territory administration, and two private schools based in Chandigarh and Panchkula.
The agency alleges that Mr Wadhwa was one of the principal beneficiaries of the fraud and acted in collusion with co-accused Ribhav Rishi, Abhay Kumar, bank officials and government officials to divert public funds. Investigators claim he played a significant role in generating, layering and concealing the proceeds of crime.
ED stated that Mr Wadhwa received more than ₹70 crore in his personal bank accounts and also obtained substantial amounts of cash generated from the allegedly embezzled funds. The proceeds were subsequently invested in various entities linked to him and used to acquire multiple immovable properties.
The investigation has identified several intermediary shell entities, including Capco Fintech Services, Swastik Desh Projects, RS Traders and SRR Planning Gurus Pvt Ltd, which allegedly received funds directly from government department accounts. ED said the money was then layered through multiple bank accounts belonging to the accused and related entities.
Investigators further alleged that hundreds of crores of rupees were transferred from these intermediary entities to jewellers, who allegedly returned cash in exchange for the banking transactions. According to ED, Ribhav Rishi and his associates subsequently distributed the cash among government officials, businessmen and other beneficiaries, including Mr Wadhwa.
The Special Court under the PMLA granted ED custody of Mr Wadhwa for four days until 2 June 2026. Earlier, the agency arrested Ribhav Rishi and Abhay Kumar on 11 May 2026. After 11 days of custodial interrogation, both were remanded to judicial custody.
Panchkula Municipal Funds Case
In a separate case, ED's Chandigarh Zonal Unit arrested Pushpinder Singh, former deputy vice-president of Kotak Mahindra Bank, in connection with the alleged embezzlement of ₹145 crore belonging to the municipal corporation of Panchkula.
The money laundering investigation stems from a first information report (FIR) registered by the anti-corruption bureau (ACB), Panchkula, under provisions of the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act against unidentified bank officials.
ED said its probe uncovered a criminal conspiracy involving municipal corporation officials, bank employees and private individuals to siphon government funds.
According to investigators, Dileep Kumar Raghav, a customer relationship manager at Kotak Mahindra Bank, and Pushpinder Singh, then deputy vice-president of the Bank, worked with Vikas Kaushik, former senior accounts officer of the Panchkula municipal corporation, to open two bank accounts in the corporation's name using forged authorisation documents.
The agency alleged that funds held in legitimate municipal corporation accounts were transferred to these unauthorised accounts using fabricated fund-migration authorisation letters. The diverted money was then routed to several financiers, including Rajat Dahra, Swati Tomar, Kapil Kumar and Vinod Kumar.
According to ED, these financiers operated under the control and direction of Mr Singh. The investigation further revealed that bank accounts belonging to Rajat Dahra and Swati Tomar, allegedly used to siphon a substantial portion of the municipal funds, were also controlled by him.
ED alleged that funds routed through these accounts were subsequently channelled back to Mr Singh and his wife, Preeti Thakur. Some of the money was also allegedly transferred to real estate firms and other private entities on his instructions.
The special judge (PMLA), Panchkula, granted ED custody of Pushpinder Singh for nine days until 9 June 2026.
The agency said investigations in both cases are continuing as it seeks to trace the complete money trail, identify additional beneficiaries and locate assets allegedly acquired using the proceeds of crime.
