Chandigarh/New Delhi, March 11 The Enforcement Directorate has registered a money laundering case and conducted searches at multiple locations on Wednesday in connection with the alleged embezzlement of Rs 590 crore from the accounts of the Haryana government, maintained with IDFC First Bank, in Chandigarh, official sources said.
The federal investigation agency conducted searches at 19 premises in Chandigarh, Gurugram in Haryana and Mohali in Punjab against various business entities, which helped the accused obtain "hawala" entries to conceal the money trail and proceeds of crime, they said.
The raids were carried out after the ED booked a case under the Prevention of Money Laundering Act (PMLA) taking cognizance of a First Information Report (FIR) filed by the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB).
According to IDFC First Bank, the alleged Rs 590-crore fraud was committed by its employees and others in accounts held by the Haryana government with the private sector lender.
The SV & ACB has arrested four persons in the case, of which two are former IDFC First Bank employees and the rest are private individuals who own a partnership firm.
According to the police and ED allegations, the funds belonging to the Haryana government were supposed to be deposited by various departments of the state in the bank, but instead of being deposited in fixed deposits, these were allegedly diverted by the accused for their personal use, the sources said.
The ED conducted searches on various business entities which have provided "hawala" entries to the main accused persons, former bank officials, certain beneficiaries of the alleged scam and real estate agents where the proceeds of crime have been dissipated, they said.
Preliminary investigation shows that "huge" funds have been transferred to various shell (dummy) companies and minor jewellery entities and finally siphoned off under the guise of gold purchase and investment into the real estate sector, the sources said.
They said that a "significant" amount of cash withdrawals has also been noticed in the said money trail.
ED sources said that a Chandigarh-based hotelier, Vikram Wadhwa, involved in the construction of real estate projects in the Tricity (Chandigarh-Mohali-Panchkula), is under their scanner. He is alleged to be absconding after the news about the alleged scam came to light, according to the sources.