Chandigarh Realtor Arrested in Multi-Crore Smart City Fund Scam
The Economic Offences Wing (EOW) of the Chandigarh Police has made a significant arrest in a high-profile financial fraud case. Vikram Wadhwa, a 52-year-old realtor from Sector 33, Chandigarh, was taken into custody on Saturday in connection with an alleged scam involving approximately Rs 116.84 crore from Chandigarh Smart City funds. This arrest underscores ongoing investigations into corruption and misappropriation of public money in urban development projects.
Links to Broader Banking Fraud and Police Actions
Police officials revealed that Wadhwa was also wanted by Haryana Police, as his name had emerged in the Rs 590 crore IDFC First Bank scam currently under investigation there. In a coordinated effort, the UT EOW obtained production warrants for three other accused individuals—Ribhav Rishi, Abhya Kumar, and Seema Dhiman—and brought them from Ambala jail for interrogation on the same day. This move highlights the interconnected nature of financial crimes across state boundaries.
Following his arrest, Wadhwa was produced in a local court where the EOW sought a seven-day police remand. The court granted a five-day remand for further interrogation, allowing investigators to delve deeper into the complex money trail. During initial disclosures, Wadhwa stated that he had colluded with former IDFC First Bank manager Ribhav Rishi to divert crores of rupees deposited in government accounts. According to police, these funds were allegedly siphoned off through shell companies and subsequently invested in various real estate projects.
Unraveling the Money Trail and Modus Operandi
Wadhwa disclosed to investigators that he met Ribhav Rishi several years ago through Rakesh Kumar Rishi, who was then a senior manager at Punjab National Bank in Sector 17. Ribhav Rishi, Rakesh's son, later worked at IDFC First Bank, and their association grew during that period. Wadhwa claimed that Ribhav informed him he was responsible for managing bank accounts of several government departments in Chandigarh and Haryana, which held substantial deposits. Police said Ribhav allegedly proposed temporarily using this money for investments, with plans to make entries to return the funds when required.
The investigation further revealed a detailed process: accounts of government departments were first transferred to the Sector 32 branch of IDFC First Bank. From there, money was allegedly routed to several private companies before being transferred to Wadhwa's accounts. Companies such as Capco Fintech Services, RS Traders, and Swastik Desh Projects were identified as part of this network facilitating the movement of siphoned funds. Police also noted that some diverted money went into the accounts of bank officer Ribhav Rishi and his wife before being invested in real estate.
Real Estate Investments and Legal Challenges
In his statement, Wadhwa told police that over the last three to four years, he had invested in various residential and commercial projects. His real estate ventures were located in Chandigarh, Mohali, Kharar, and several other areas. He revealed that the original documents of these properties were kept with relatives across Punjab and Haryana. Additionally, he mentioned that the Income Tax department had conducted a raid on his house previously, indicating prior scrutiny of his financial activities.
During the investigation, EOW officials discovered that records of Chandigarh Smart City Limited listed 11 fixed deposit receipts (FDRs) worth about Rs 116.84 crore. However, no corresponding record of these FDRs existed in the bank's system. Police alleged that the FDRs were issued in March-April 2025 by then manager Ribhav Rishi of the IDFC First Bank Sector 32 branch. An examination of bank statements revealed suspicious transactions amounting to Rs 8.22 crore, with police stating that verification for these transactions could not be found in municipal corporation records.
Legal Proceedings and Defense Applications
Meanwhile, Wadhwa moved three applications in court through his counsel, challenging the arrest and seeking legal remedies:
- The first application, filed under Section 183(1) read with Section 183(5) of BNS, sought to record that he had been made to sign various handwritten and typed papers, including black paper, while in custody.
- The second application requested copies of the arrest memo, the FIR, and the remand application.
- The third application sought a declaration that his arrest was illegal, violated procedure established by law, and was in contravention of Article 21 and Article 22 of the Constitution of India, read with Sections 36, 35, 47, 48, and 62 of the BNS.
This case highlights the intricate web of financial fraud involving public funds, banking systems, and real estate investments, with ongoing investigations expected to uncover further details.
