Once Celebrated Entrepreneur Arrested! Who is Vikram Wadhwa, Key Accused in IDFC First Bank Scam
Real-estate developer and hotelier Vikram Wadhwa, once known in business circles as a self-made entrepreneur, has been arrested by the Chandigarh Police in connection with a major financial fraud. The 52-year-old businessman was taken into custody on Saturday morning by the police’s Economic Offences Wing (EOW).
The arrest comes after Wadhwa was named a key suspect in multiple financial scams, including the ₹590 crore fraud linked to IDFC First Bank and the ₹116 crore alleged embezzlement under the Chandigarh Smart City Limited project. According to officials, he had been on the run for several days after his name surfaced in the investigations.
A major banking fraud of around ₹116 crore has come to light at the IDFC First Bank branch in Sector-32, Chandigarh. The fraud is linked to funds belonging to Chandigarh Smart City Limited (CSCL) and the Municipal Corporation. Investigators say fake financial documents were used to divert the funds.
How the Fraud Was Discovered
- The fraud was detected when authorities tried to encash fixed deposits related to CSCL funds.
- During verification, the bank records did not show these deposits.
- It was found that fake Fixed Deposit Receipts (FDRs) worth about ₹116.84 crore had been issued.
Who Is Under Investigation
- A former branch manager of IDFC First Bank and other officials are under investigation.
- Police have also arrested businessman Vikram Wadhwa, who is suspected to be a key accused.
- Authorities believe the fraud involved collusion between bank officials and external parties.
Other Related Financial Irregularities
- Investigators also found suspicious transactions linked to government-related accounts.
- Another discrepancy of about ₹75 crore was reported in accounts linked to CREST.
- The case is also connected to a much larger probe involving financial irregularities of around ₹590 crore.
Investigation and Action
- Police and multiple agencies are investigating the case.
- Several bank officials have been suspended and some accused have been arrested.
- Authorities are tracing the money trail and checking links with shell companies.
Officials say the investigation is ongoing and more details may emerge as the probe progresses.
Arrest in Smart City Project Case
Officials from the Economic Offences Wing said Wadhwa was arrested in connection with the alleged misappropriation of more than ₹116 crore in public funds meant for infrastructure and urban development under the Smart City mission in Chandigarh.
Police said the arrest followed weeks of investigation into financial transactions, during which authorities tracked suspicious money trails and shell companies linked to Wadhwa. Investigators suspect that funds allocated for development projects were diverted through several intermediary firms before being siphoned off.
Authorities believe the case could expand further as forensic audits of financial records and contracts related to the project are still underway.
Early Life and Rise in Business
Wadhwa’s journey began modestly. A Class 12 pass-out from a school in Malout, he moved to Chandigarh in the mid-1990s. Initially, he worked as a caretaker in guesthouses that operated from residential houses.
Over time, he entered the hospitality business and eventually ran Hotel Landmark in Sector 22, which helped him gain recognition in the local business community. Later, he expanded into property dealing and real-estate development, gradually building a business network across the region.
Business Network Across the Tricity
Over the past decade, Wadhwa developed strong business connections in the tricity region of Chandigarh, Panchkula, and Mohali. Investigators say he built a wide network of companies and partnerships that helped him secure financial deals and contracts.
He was also known to have close links with several bureaucrats and government officials in Haryana, Punjab, and the Union Territory of Chandigarh. According to sources, Wadhwa often hosted parties and social gatherings attended by senior officials.
Real Estate Firms Under Investigation
Wadhwa served as a designated partner in three Limited Liability Partnership (LLP) firms:
- Prisma Residency LLP
- Kinspire Realty LLP
- Martell Buildwell LLP
These firms own large parcels of land in the Kharar and Mohali areas, where several residential and commercial projects are currently under development. Investigating agencies have now placed these assets under scrutiny as part of the financial probe.
Findings by Enforcement Directorate
In a press release issued on Friday, the Enforcement Directorate said a significant amount of money linked to the fraud had allegedly been siphoned off by Wadhwa.
According to the agency, funds believed to be “proceeds of crime” were transferred to Wadhwa’s bank accounts and later moved to his real estate companies, including Prisma Residency LLP, Kinspire Realty LLP, and Martell Buildwell LLP.
Investigators suspect this network of companies was used to divert funds and conceal questionable financial transactions.
Wider Financial Investigation
Probe officials said the suspected diversion of funds under the Smart City initiative involved routing money through multiple intermediary firms before it was allegedly siphoned off.
The total diversion in this case alone is estimated at more than ₹116 crore.Authorities are now examining contracts, payment approvals, and financial flows linked to several vendors and companies involved in the projects.
Tracking and Arrest
Officers from the Economic Offences Wing tracked Wadhwa’s movements for several days before finally arresting him.
Police sources indicated that more arrests may follow as investigators examine the roles of Wadhwa’s associates and corporate entities connected to the alleged scams.
Court Proceedings
Police said Wadhwa will be produced before a local court in Chandigarh, where investigators will seek custodial interrogation.
Officials believe questioning him in custody could help uncover details of what they describe as a complex financial conspiracy involving multiple states and companies.The investigation into the alleged scams is still ongoing, and authorities say further revelations may emerge as financial records and company transactions are examined.
