The Enforcement Directorate (ED) on Monday said it has made the third arrest in its money laundering investigation into alleged embezzlement of Rs 645 crore from bank accounts linked to the Haryana Government, Chandigarh Administration and two private schools maintained with IDFC First Bank.ED arrested real estate businessman Vikram Wadhwa on May 29 under the Prevention of Money Laundering Act (PMLA), alleging that he received more than Rs 70 crore in proceeds of crime and played a key role in the generation, layering and concealment of the laundered funds, an official statement said.Following his arrest under Section 19 of the PMLA, Wadhwa was produced before a special PMLA court that sent him to four-day ED custody till June 2, it said.According to ED, its investigation has so far revealed the “embezzlement of public funds amounting to Rs 645 crore from the bank accounts of Haryana Government, Chandigarh UT Administration and two private schools based in Chandigarh and Panchkula maintained with IDFC First Bank”.The agency alleged that Wadhwa acted in connivance with co-accused Ribhav Rishi, Abhay Kumar, bank officials and government officials in siphoning off the funds.“Vikram Wadhwa has been instrumental in generation, layering and concealment of proceeds of crime,” ED said in a statement.The agency alleged that “he received proceeds of crime amounting to more than Rs 70 crore in his personal account”, in addition to a substantial amount of cash generated from the embezzled funds.It said he subsequently invested the money in various entities linked to him and purchased several immovable properties.ED said a number of intermediary shell entities, including Capco Fintech Services, Swastik Desh Projects, RS Traders and SRR Planning Gurus Pvt Ltd, allegedly received embezzled funds directly from accounts of government departments.“Thereafter, the embezzled funds were further layered through various bank accounts of accused persons and entities related to them,” the agency said.The probe has further revealed that hundreds of crores of rupees were transferred from these intermediary entities to various jewellers who allegedly provided cash against the banking transactions, ED claimed.“Ribhav Rishi, along with his associates, further distributed the said cash amount to various government officials and businessmen, including Vikram Wadhwa,” the statement said.The agency said efforts are underway to trace the complete money trail and identify other beneficiaries and properties allegedly acquired from the proceeds of crime.ED arrested Rishi and Kumar in the case on May 11. After 11 days of custodial interrogation, both were sent to judicial custody.