India’s financial crime agency, the Directorate of Enforcement (ED), carried out searches at 19 places in cities like Chandigarh, Mohali, Panchkula, Gurgaon and Bengaluru on March 12 related to a ₹597-crore fraud case.
What ED found?
The investigation is being done under the Prevention of Money Laundering Act, 2002. During the raids, ED froze more than 90 bank accounts and seized important documents and digital evidence. They also found proof that money was moved through many companies to hide its source. More than 25 electronic devices, including mobile phones and laptops, were seized. Six luxury cars were also seized — three Toyota Fortuners, two Innovas, and one Mercedes. Ten properties were also identified, which were possibly bought using the illegal money.
So far, 11 people have been arrested. These include 6 bank employees, 4 private individuals, and 1 government official. Former bank employees Ribhav Rishi and Abhay Kumar are among the main suspects. Businessman Vikram Wadhwa is also accused of receiving part of the stolen money. Investigators say Wadhwa is currently missing (absconding).
Investigators found an important clue. The main accused allegedly created many fake companies and firms. These fake businesses were used to move government money illegally into different bank accounts. By doing this, the accused could hide where the money was going and take the funds for personal use. Government money meant for safe bank deposits was allegedly stolen and moved through fake companies, jewellery transactions, and real estate investments to hide the fraud. The ED is still investigating the case.
