On Saturday, Chandigarh Police arrested Wadhwa, the main person accused in a large fraud connected to accounts at an IDFC First Bank branch. The Economic Offences Wing – the EOW – arrested him in Chandigarh after detectives connected him to money being moved from Chandigarh Smart City Limited accounts, and to the bigger Rs 590 crore IDFC First Bank fraud.
Arrest Details and First Accusations
Wadhwa, 52, was found at a place he was hiding in Kharar, Mohali, as he had been running from the police since the fraud became known on February 22, 2026. Officers said he was the main person planning a Rs 590 crore scheme with several government departments involved. Police stated Wadhwa got the money from the crime directly into his bank account, and then sent the money to property businesses like Prisma Residency LLP and Kinspire Realty LLP. The authorities are going to ask for time to find out where the money went, through more than 2,400 transactions.
Where the Money Went and Which Businesses Were Involved
Detectives found Wadhwa moved funds through different property companies and shell companies. A private company, Swastik Desh Projects Pvt Ltd, seems to have sent a lot of money before it was transferred to jewellery businesses and property businesses. Officials claim almost Rs 100 crore went to jewellery businesses using fake bills, making a false record of gold being bought. The way the money was hidden is said to have covered up where the money originally came from and put it into building and property projects.
What Part the IDFC First Bank Branch Played in the Fraud
The same IDFC First Bank branch in Sector 32, Chandigarh, is at the centre of both the Chandigarh Smart City Limited case and the bigger Rs 590 crore fraud. Investigators say a number of people accused are in both cases, showing problems in the system at the branch. The Haryana State Vigilance and Anti-Corruption Bureau found money meant to be put into fixed deposits was taken out using fake debit notes and made-up bank statements. People inside the bank and department officials are said to have worked together to move public money into accounts that had been taken over.
How Wide the Investigations Are and Which Groups Are Involved
Many groups worked together on raids and searches to find the network. The Enforcement Directorate – the ED – state vigilance groups, the Haryana Anti-Corruption Bureau, and the local police searched places in Chandigarh, Mohali, Panchkula, Gurgaon, and Bengaluru. The ED said searches at 19 places led to over 90 bank accounts being frozen, and a network of shell companies being found. Eleven people have already been arrested in related investigations, including former bank staff accused of using shell companies to take money.
What the Law Says and Issues with How Things Are Managed
The authorities will probably bring charges for fraud, money laundering, criminal planning and corruption. Wadhwa is being looked at for supposedly hiding and mixing illegal money into legal businesses. Apart from individual responsibility, the case raises issues about how things are managed and how banks are controlled. It shows the risk of people inside working together, weak checking of large public money, and the need for better safety in how public money is handled.
Next Steps in Prosecution and Getting Money Back
Police are going to take Wadhwa to court to ask for time to question him more, and to find out the full path of the money. Investigators want to get back property and other things bought with the money that was moved, including property and vehicles linked to the accused. The many-group investigation will continue to follow the money through accountants, businesses and third-party businesses. Officials say a full check of transactions and business links will be very important to make cases that can be used in court and get public money back. This case as it goes on shows the problems of policing financial crime that crosses state lines and areas of business. As investigations go on, officials will need to balance quickly getting property back, with carefully collecting proof to make sure the cases are successful.
