CHANDIGARH: The Enforcement Directorate (ED) on Wednesday carried out raids at 19 locations across Haryana, Chandigarh and Punjab as part of its money laundering investigation into the ₹590 crore fraud at the Chandigarh branch of IDFC First Bank.
Officials said the searches were conducted in Gurgaon, Mohali and other parts of the Chandigarh region to trace the money trail and identify shell companies allegedly used to divert the funds. The raids targeted premises linked to former bank officials, suspected beneficiaries of the fraud and real estate agents believed to have facilitated bogus financial transactions.
According to ED sources, investigators are examining documents related to cash withdrawals, gold purchases and investments in real estate that were allegedly made using the siphoned funds. During the searches, the agency seized several documents, digital devices and financial records for further examination.
The fraud came to light on February 22, 2026, when IDFC First Bank reported irregular transactions amounting to around ₹590 crore in accounts linked to Haryana government departments. The funds belonged to agencies such as the Haryana School Shiksha Pariyojna Parishad, the Haryana State Pollution Control Board and the Development and Panchayat Department.
Investigators suspect that some bank employees misused their access to divert the money through a network of more than 1,000 accounts and shell companies. The funds were allegedly routed through multiple transactions to conceal their origin before being invested in jewellery businesses and real estate projects in the Chandigarh Tricity area.
One of the key suspects, Chandigarh-based hotelier and real estate developer Vikram Wadhwa, allegedly withdrew large amounts of cash and went missing soon after the fraud surfaced. Authorities have issued a lookout notice against him.
Following the disclosure, IDFC First Bank suspended four officials and filed a police complaint. The bank also reimbursed about ₹645 crore to settle claims from the affected government departments. The revelation had earlier triggered a sharp fall in the bank’s share price.
Meanwhile, the Haryana State Vigilance and Anti-Corruption Bureau (SV&ACB) has already arrested several people in connection with the case, including former bank employees and their associates. The ED registered a money laundering case under the Prevention of Money Laundering Act on February 27 and is continuing its investigation to identify all beneficiaries and recover the diverted funds.
Officials said the agency is also examining whether funds belonging to other government bodies were similarly misused. The investigation is ongoing.
