Kotak Mahindra Bank Fraud Case: ED arrests ex-DVP in Rs 145-crore Panchkula scam

The Enforcement Directorate (ED) has arrested Pushpinder Singh, former Deputy Vice President of Kotak Mahindra Bank, in connection with the alleged Rs 145 crore fraud involving the Municipal Corporation (MC), Panchkula. The arrest was made on June 1 under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002, the agency said in an official statement.

The ED has described Singh as the alleged mastermind behind the fraud in which funds belonging to the Municipal Corporation, Panchkula were allegedly siphoned off through a well-planned criminal conspiracy involving bank officials, municipal employees and private individuals.

The money laundering investigation stems from a First Information Report (FIR) registered by the Anti-Corruption Bureau (ACB), Panchkula, Haryana, under various provisions of the Bharatiya Nyaya Sanhita, 2023 and the Prevention of Corruption Act, 1988 against unknown officials of Kotak Mahindra Bank.

What is the alleged fraud case

The FIR alleged that funds amounting to about Rs 145 crore belonging to the Municipal Corporation, Panchkula were siphoned off through a deep-rooted and organised conspiracy involving bank officials and others.

The ED said its investigation has so far revealed a closed criminal nexus between municipal corporation officials, bank employees and private individuals who allegedly worked together to divert government funds.

According to the agency, Dileep Kumar Raghav, then Customer Relationship Manager at Kotak Mahindra Bank, and Pushpinder Singh, then Deputy Vice President of the bank, allegedly assisted Vikas Kaushik, former Senior Accounts Officer of MC Panchkula, in opening two unauthorised bank accounts in the name of the municipal corporation using forged and fake authorisation documents.

The agency alleged that funds from the civic body's genuine bank accounts were subsequently transferred into these unauthorised accounts through forged fund migration authorisation letters purportedly issued on behalf of the Municipal Corporation, Panchkula.

How were the funds allegedly routed

The ED claimed that the diverted funds were transferred to several financiers, including Rajat Dahra, Swati Tomar, Kapil Kumar and Vinod Kumar.

According to the investigation, these individuals allegedly operated under the direction and control of Pushpinder Singh. The agency further alleged that bank accounts used by Rajat Dahra and Swati Tomar for siphoning a substantial portion of the municipal funds were also controlled by Singh.

The probe agency claimed that money routed through these accounts was subsequently transferred back to Pushpinder Singh and his wife, Preeti Thakur. Part of the funds was also allegedly diverted to real estate firms and other private individuals on Singh's instructions.

Court grants ED custody

According to the ED, the Special Court (PMLA), Panchkula, has granted the agency nine days' custody of Singh until June 9, 2026.

The agency stated that further investigation into the money trail and the involvement of other accused persons is underway.

The allegations are part of an ongoing investigation, and the guilt or innocence of the accused will be determined through the judicial process.