Rs 590-crore IDFC First Bank scam: ED launches major probe across 19 locations

The Enforcement Directorate (ED) on Wednesday registered a money laundering case and conducted searches at 19 locations in connection with an alleged Rs 590-crore embezzlement from the Haryana government’s accounts held with IDFC First Bank.

The raids spanned Chandigarh, Gurugram, and Mohali , targeting business entities and individuals who reportedly facilitated hawala entries to conceal the money trail. The investigation follows an FIR filed by the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB).

According to IDFC First Bank, the alleged fraud involved bank employees and others who diverted funds deposited by various Haryana government departments. Instead of placing the money in fixed deposits as intended, the funds were misappropriated through a network of shell companies, fake partnerships, and jewellery businesses , masking the movement of money and disguising it as gold purchases or real estate investments .

The SV & ACB has arrested four individuals , including two former IDFC First Bank employees and two private persons running a partnership firm linked to the scam. Preliminary investigations indicate that large sums were siphoned off through dummy companies and later channelled into the real estate sector , with significant cash withdrawals also traced along the way.

The ED sources highlighted Chandigarh-based hotelier Vikram Wadhwa , involved in real estate construction across the Tricity (Chandigarh-Mohali-Panchkula), as a person of interest. He is reportedly absconding following media coverage of the scam.

The probe underscores the intricate financial web allegedly used to divert public funds and emphasizes the ED’s determination to uncover the full extent of the fraud. Investigators continue to examine connections between ex-bank officials, shell firms, and real estate beneficiaries to trace and recover the misappropriated money.