Chandigarh realtor-hotelier held in Rs 116-cr scam also linked to IDFC bank fraud

Another arrest in Rs 590-crore fraud

Investigations revealed that an amount exceeding Rs 250 crore was received by Sawan Jewellers from various companies and firms linked to the accused, including Ribhav Rishi, Abhay Kumar, Abhishek Singla and Swati Singla. “Funds had been transferred into these companies/firms from government accounts through illegal means,” the ACB said.

Preliminary investigation also found that Katodia allegedly facilitated cash conversion services for the prime accused and received a hefty commission in return.

“The accused falsely recorded the sale of gold items to these firms/companies in their books. The accused, Rajan, played a pivotal role in hatching the conspiracy right from the inception of the fraud and actively contributed to executing the crime as part of a premeditated plan,” it said.

The accused will be produced before a court in Panchkula, and a police remand will be sought for interrogation.

The investigation also revealed that Sawan Jewellers received funds through unauthorised channels from entities such as Cap Co Fintech Services, SRR Planning Gurus Pvt Ltd and Swastik Desh Project, among others.

Earlier, 11 accused, including six bank employees, four private individuals and one government official, were arrested in connection with the case.

Meanwhile, Wadhwa was on the run ever since his name surfaced earlier this month as a “key suspect” in the Rs 590-crore scam, despite being on the radar of the Haryana ACB and State Vigilance Department, and the ED.

Chandigarh Police said that Wadhwa is a ‘key suspect’ in the misappropriation of more than Rs 116 crore in public funds meant for infrastructure and urban development under the Smart City initiative. The arrest came after weeks of tracking his financial trails and following multiple leads tied to suspicious transactions and shell entities.

Rags-to-riches story

Wadhwa’s story had long been cited as a classic ‘rags-to-riches’ story in tricity’s business circles. Coming from a modest background — son of a schoolteacher father and a homemaker mother (both, now deceased) — Wadhwa built a reputation in Chandigarh as a sharp entrepreneur who rapidly expanded his business interests across real estate, infrastructure contracts, and financial ventures.

A Class 12 graduate from a school in Malout, Wadhwa came to Chandigarh in the mid-90s and started as a caretaker in the guesthouses that used to be operated from residential houses. From there, he started building his empire and got into the business of hotels. He operated Hotel Landmark in Sector 22 for quite a number of years before venturing into property-dealing and real-estate businesses.

Known for his proximity to several bureaucrats and government functionaries across Haryana, the UT of Chandigarh, and Punjab, Wadhwa was often seen with these officers at his parties and social gatherings across the tricity.

Over the past decade, he cultivated a network of companies and partnerships that helped him secure contracts and financial deals across the tricity of Chandigarh, Panchkula, and Mohali.

He became a designated partner in three Limited Liability Partnership (LLP) firms – Prisma Residency, Kinspire Realty, and Martell Buildwell. These real estate firms own several acres of land on which residential and commercial projects are coming up in Kharar, Mohali area. All these assets are now under the scrutiny of the investigating agencies.

Sources said that funds earmarked for development projects under the Smart City mission in Chandigarh (the case in which UT Police arrested Wadhwa) were routed through a series of intermediary firms before allegedly being siphoned off. The alleged diversion, estimated at over Rs 116 crore, has resulted in a wider financial probe.