Key Conspirator Arrested in ₹590 Crore IDFC First Bank Fraud

Chandigarh Police's Economic Offences Wing (EOW) has made a significant breakthrough by arresting prominent businessman and hotelier Vikram Wadhwa, identified as a key conspirator in a massive financial fraud linked to IDFC First Bank. The arrest occurred on Saturday, March 14, 2026, after Wadhwa had been absconding for several weeks as his name surfaced in multiple investigations. He was apprehended from a hideout in Kharar, Mohali, following extensive tracking of his movements across the Tricity region. The fraud case involves the alleged embezzlement of public funds from various government accounts maintained with IDFC First Bank's Sector 32 branch in Chandigarh. The scam is multifaceted, with two primary components: a larger fraud of approximately ₹590 crore (or ₹597 crore in some Enforcement Directorate reports) impacting at least eight Haryana government departments, and a separate financial irregularity amounting to over ₹190 crore affecting the Chandigarh Municipal Corporation (MC) and the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST). The modus operandi of the fraud involved the creation of fake Fixed Deposit Receipts (FDRs) and the diversion of funds without proper authorization. For instance, the Chandigarh Municipal Corporation detected irregularities when it attempted to encash FDRs worth over ₹116 crore, which were prepared from funds shifted during the closure of Chandigarh Smart City Limited (CSCL) in March 2025. The bank later informed the civic body that these FDRs were not in their system and were fake. Similarly, CREST filed a complaint regarding suspicious transactions exceeding ₹75 crore. Investigators, including the Haryana State Vigilance and Anti-Corruption Bureau (ACB) and the Enforcement Directorate (ED), have revealed that the funds were siphoned off through a complex network of shell entities and accounts. Former IDFC First Bank employees, notably Ribhav Rishi (who resigned in June 2025) and Abhay Kumar, are believed to have played central roles in orchestrating the scam by influencing government officials to deposit public funds into the branch and then facilitating their unauthorized transfer or withdrawal using forged documents. Vikram Wadhwa, a 52-year-old real estate developer and hotelier, has been identified as a significant player in the conspiracy, particularly in the layering and siphoning off of the illicit funds. Sources indicate that Wadhwa, once known for his 'rags-to-riches' story in the tricity's business circles, was closely associated with the bank employees allegedly involved in the fraud. The ED's investigations revealed that Wadhwa directly received 'proceeds of crime' in his bank accounts and subsequently transferred these funds to various real estate concerns like Prisma Residency LLP, Kinspire Realty LLP, and Martell Buildwell LLP. He also allegedly utilized jewellers, including Sawan Jewellers, and shell firms like Swastik Desh Projects, to route significant sums, some appearing as bogus gold purchases. The Enforcement Directorate has been actively investigating the money laundering aspect of the scam, conducting extensive searches at 19 locations across Chandigarh, Mohali, Panchkula, Gurugram, and Bengaluru on March 12, 2026. During these raids, the ED froze over 90 bank accounts and seized incriminating digital and documentary evidence, indicating a wide-ranging operation to trace the illicit money trail. The ED's case was registered under the Prevention of Money Laundering Act (PMLA) based on an FIR filed by the Haryana State Vigilance and Anti-Corruption Bureau. Following his arrest, Wadhwa was produced before a court and remanded to five-day police custody by Chandigarh Police to facilitate further interrogation, recovery of documents, properties linked to the scam, and to trace the complete money trail involving potentially over 2,400 transactions. His counsel, however, maintained his innocence during the court proceedings. Prior to Wadhwa's arrest, the Chandigarh Police had already recovered a Range Rover allegedly belonging to him, suspected to have been purchased with the diverted funds. The scale of the fraud is substantial, with the ₹590 crore figure exceeding IDFC First Bank's third-quarter net profit of ₹503 crore, as the bank itself acknowledged in its disclosure of the fraud in February 2026. The bank has suspended four suspected officials and engaged KPMG for an independent forensic investigation, asserting that the lapse was isolated and stemmed from internal collusion. So far, various agencies have arrested multiple individuals in connection with the overall scam, including bank employees, private individuals, and government officials. Wadhwa's arrest is a critical development, as law enforcement agencies anticipate it will help uncover more details of the intricate scam that has affected both Chandigarh and Haryana.

Frequently Asked Questions

Read Full Story on Quick Digest