₹590-Cr Govt Fund Scam: Chandigarh Realtor Named ‘Key Architect’, Manhunt On

The investigation into Haryana’s massive ₹590 crore banking fraud has escalated into a full-scale manhunt for Vikram Wadhwa, a prominent Chandigarh realtor. The Anti-Corruption Bureau (ACB) now believes Wadhwa was the primary mastermind who leveraged his proximity to influential circles to orchestrate the diversion of state welfare funds into private real estate and jewellery accounts.

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While the primary funds have been largely recovered by the bank, the criminal nexus involving bank officials, government middlemen, and private businessmen continues to expand with every new arrest.

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The Manhunt: Who is Vikram Wadhwa?

Vikram Wadhwa is no ordinary businessman. He is a designated partner in three LLP firms: Prisma Residency, Kinspire Reality, and Martell Buildwell, with offices in Chandigarh’s Sector 22.

• The Flight: Wadhwa reportedly went underground even before the formal FIR was registered on February 23.

• The Border Alert: Authorities have alerted all airports and seaports, fearing he may attempt to flee the country to avoid custodial interrogation.

The Money Trail: From Welfare Funds to Jewellers

The funds were primarily siphoned from the Mukhya Mantri Grameen Awas Yojna 2.0 (MMGAY) and the Haryana State Pollution Control Board.

• Swastik Desh Project: Nearly ₹300 crore was routed through this firm, owned by the wife and brother-in-law of an arrested bank relationship manager.

• Jewellery Diversion: Large sums were further diverted to Sawan Jewellers and other private entities in Mohali and Chandigarh to convert the cash into untraceable assets.

• Latest Arrest: Manish Jindal, arrested on February 28, is accused of receiving “huge benefits in cash and valuable items” for his role in executing the diversion.

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Banking Failures: Forged Cheques and Procedural Lapses

The ACB’s findings reveal a shocking lack of oversight at the branch level.

• The Behera Signature: Multiple cheques were cleared using the forged signatures of former Director-General D.K. Behera, who had already relinquished his post months prior.

• The “Words vs. Figures” Error: In one instance, the bank honoured a cheque that stated ₹2.5 crore in figures but “Rupees Twenty-Five” in words—a glaring red flag that was ignored by the clearing staff.

Reality Check

The Haryana government has managed to recover nearly ₹583 crore (including interest) from IDFC First Bank. Still, the restitution of funds does not mean the case is closed. Therefore, while the public exchequer is “safe,” the structural integrity of how government funds are parked remains under a cloud. In fact, the ACB’s focus has now shifted from “recovery” to “retribution,” targeting the high-level nexus that allowed such a massive siphoning to occur undetected for months.

The Loopholes

The banks claimed this was an “isolated employee fraud.” In fact, this is a “Supervisory Loophole”—for ₹590 crore to move across multiple accounts using forged signatures of a former official, there had to be a systemic failure of the “Maker-Checker-Authoriser” protocol. Therefore, the bank’s attempt to frame this as an isolated incident is likely a strategy to avoid broader RBI penalties. Still, the “Unincorporated Sector Loophole”—routing money through small LLPs—allowed the conspirators to hide the funds from standard corporate audits.

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What This Means for You

If you are a government contractor or associated with these departments, prepare for significant delays in fund disbursement. First, realize that the Haryana government has frozen all transactions with the affected banks, leading to a massive “paperwork backlog” as accounts are migrated to nationalized banks. Then, if you have any business dealings with Prisma Residency or Martell Buildwell, understand that these assets may soon be attached by the ACB under the Prevention of Corruption Act.

Finally, understand that KYC and signature verification will become much stricter. You should ensure all your official banking mandates are updated. Before you authorize any large transfer, check if your department has complied with the new “Nationalized Bank Only” parking policy issued by the Chief Secretary on February 18.

What’s Next

The ACB is expected to move for the attachment of Wadhwa’s real estate assets by mid-March 2026. Then, look for the interrogation of four senior IAS officers who were recently brought under the scanner to determine if there was “administrative negligence.” Finally, the KPMG forensic audit commissioned by the bank is expected to release its findings by late March, which will likely trigger more arrests in the Chandigarh and Mohali banking sectors.

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