3 min readMay 30, 2026 09:45 AM IST
A special court under the Prevention of Money Laundering Act (PMLA), Panchkula, on Friday sent Chandigarh-based property dealer and real-estate developer Vikram Wadhwa to Enforcement Directorate (ED) custody, for four days, till June 2. This is in connection with a ‘money laundering’ case linked to the embezzlement of public funds from multiple government departments and entities in Haryana.
The ED, seeking seven days of custodial interrogation, told the court the investigation had revealed a large-scale diversion of public funds through forged fixed deposits, shell entities and fraudulent banking transactions.
The agency submitted before the court that “the analysis of the structured and deliberate movement of funds, which ultimately facilitated the embezzlement and misappropriation of government money to the tune of approximately Rs 845 crores. The nature, frequency and routing of these credit and debit transactions strongly suggest a systematic mechanism adopted for siphoning off public funds”.
It also alleged that various bank records, KYC documents and transaction details were examined during the investigation. It was found that the government funds were diverted through multiple accounts maintained in the names of departments, boards, corporations and other public entities, the agency claimed.
According to the ED, an amount of approximately Rs 645 crore was siphoned from the accounts of entities including the Haryana Rural Development Fund Administration Board, Haryana School Shiksha Pariyojna Parishad, Haryana Labour Welfare Board, Haryana State Pollution Control Board, Municipal Corporation Panchkula, Municipal Council Kalka, Haryana State Agricultural Marketing Board, Haryana Power Generation Corporation Limited and Chandigarh Renewable Energy and Science & Technology Promotion Society.
Regarding Wadhwa’s alleged role, the ED said the investigation had revealed he was “one of the major beneficiaries of the proceeds of crime generated from the embezzlement of funds from the bank accounts…”
The agency claimed that Wadhwa received “an amount of Rs 70.73 crores approximately through banking channels…”.
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Wadhwa utilised the proceeds for purchasing four immovable properties during 2025-26, including properties in Chandigarh, Mohali and Amritsar, the ED alleged. The agency also claimed that the funds generated through the alleged fraud were layered and concealed through shell entities and associates.
The defence counsel, Vishal Garg Narwana, opposed the ED’s plea for seven-day custody and argued that the case is based entirely on documentary evidence and “nothing is to be asked from Vikram Wadhwa”.
Narwana contended that the ED had not provided adequate reasons for arresting the accused and opposed the request for extended custodial interrogation.
However, in its application, the ED maintained that custodial interrogation was necessary to “unearth the entire modus operandi adopted for generation of proceeds of crime”, identify ultimate beneficiaries, trace the flow of funds and ascertain the utilisation of the alleged proceeds of crime.
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The court partly allowed the ED’s application and granted four days of custodial interrogation.
Wadhwa will now be produced before the court again on June 2.
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