New Delhi, March 11 The Enforcement Directorate conducted searches at 19 locations on Wednesday in connection with alleged embezzlement of ₹590 crore from the accounts of the Haryana government, maintained with IDFC First Bank in Chandigarh, sources said.
The agency conducted searches in Haryana and Chandigarh against various business entities who helped the accused persons obtain bank accounts to conceal the money trail and proceeds of the crime, they said.
The funds were supposed to be deposited by various government departments of the state in the bank, but instead of being deposited in fixed deposits, these were allegedly diverted by the various accused persons for their personal use, the sources said.
In its investigation, the ED conducted searches on various business entities that have provided bank accounts to the main accused, former bank officials, certain beneficiaries of the alleged scam, and real estate agents where the proceeds of the crime have been dissipated, they said.
The primary investigation showed that huge funds have been transferred to various shell companies and minor jewellery entities, routed through various shell companies and layered through large transactions, and finally siphoned off under the guise of gold purchases and investment into the real estate sector, the sources said.
Significant amounts of cash withdrawals have also been noticed in this money trail, with the name of Chandigarh-based hotelier Vikram Wadhwa, involved in construction of real estate projects in the Tricity, having emerged in this case. Wadhwa is believed to have absconded after the news about the alleged scam came to light, they said.