Chandigarh Police have arrested real estate developer and hotelier Vikram Wadhwa, a key accused in the alleged misappropriation of public funds linked to the now-defunct Chandigarh Smart City Limited. His arrest comes amid an ongoing investigation into a ₹590-crore fraud involving accounts maintained at an IDFC First Bank branch, with authorities alleging that large sums were siphoned off through shell entities and illicit financial channels.

Separately, Haryana State Vigilance and Anti-Corruption Bureau (ACB) arrested Rajan Katodia, the owner of Chandigarh-based Sawan Jewellers, in connection with the Rs 590-crore fraud case, with investigators finding that more than Rs 250 crore had been routed to his firm from companies linked to the accused. He is the 12th person to be arrested in the case, according to a report by The Indian Express.

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.