ED arrests ex-Kotak Bank official in ₹145 crore Panchkula civic fraud
Synopsis
A former Kotak Mahindra Bank Deputy Vice President has been arrested by the ED as the alleged mastermind of a ₹145 crore fraud on Panchkula's Municipal Corporation — a scheme that used forged documents to open fake civic accounts, then laundered the proceeds through a network of financiers back to the accused and his wife.
Key Takeaways
The ED arrested Pushpinder Singh , ex-Deputy Vice President of Kotak Mahindra Bank , on 1 June under the PMLA, 2002 .
Singh is the alleged mastermind of a ₹145 crore fraud targeting the Municipal Corporation, Panchkula .
A Special PMLA Judge remanded Singh to ED custody until 9 June .
Fake bank accounts were opened using forged documents in the civic body's name to divert government funds.
Proceeds were routed through financiers Rajat Dahra , Swati Tomar , Kapil Kumar , and Vinod Kumar before flowing back to Singh and his wife Preeti Thakur .
The ED's probe was initiated on the basis of an ACB, Haryana FIR filed under the Bharatiya Nyaya Sanhita, 2023 and the PC Act, 1988 .
The Enforcement Directorate (ED) on Monday, 1 June arrested Pushpinder Singh, former Deputy Vice President of Kotak Mahindra Bank, for allegedly masterminding a ₹145 crore fraud against the Municipal Corporation, Panchkula. Singh was taken into custody under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002, by the ED's Chandigarh Zonal Unit.
Custody and Legal Proceedings
A Special Judge (PMLA), Panchkula, remanded Singh to ED custody until 9 June. The federal agency's investigation was triggered primarily by an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, Haryana, under various sections of the Bharatiya Nyaya Sanhita, 2023, and the Prevention of Corruption (PC) Act, 1988, against unknown bank officials.
How the Fraud Was Executed
According to the ED, a criminal nexus involving Municipal Corporation officials, bank employees, and private individuals conspired to siphon government funds. Dileep Kumar Raghav, Customer Relationship Manager at Kotak Mahindra Bank, and Pushpinder Singh allegedly worked in concert with Vikas Kaushik, former Senior Accounts Officer of the Municipal Corporation, Panchkula, to open two unauthorised bank accounts using forged and fake authorisation documents in the name of the civic body.
Funds held in the corporation's legitimate accounts were then transferred into these fraudulent accounts using fabricated fund-migration authorisation letters, the ED stated. The illegally diverted money was subsequently routed to a network of financiers — identified as Rajat Dahra, Swati Tomar, Kapil Kumar, and Vinod Kumar — all reportedly operating under Singh's direction and control.
Money Trail and Beneficiaries
Investigators found that the bank accounts of Rajat Dahra and Swati Tomar, used to siphon funds from the Municipal Corporation, were also under Singh's control. Funds received by these financiers were subsequently routed back to Pushpinder Singh and his wife, Preeti Thakur, according to the ED. A portion of the proceeds was also transferred to real estate firms and other private individuals on Singh's directions, the agency added.
Significance of the Case
The case is notable for its scale and the depth of institutional compromise it allegedly involved — spanning a nationalised civic body, a private-sector bank, and a web of private intermediaries. This comes amid heightened ED scrutiny of financial fraud cases involving local government funds across Haryana. The arrest of a senior bank official as the alleged mastermind marks a significant escalation in the investigation, which is expected to widen as the money trail is traced further.
Point of View
The more critical test now is whether the money trail leads to further arrests up the hierarchy. The involvement of a serving bank official, a civic accounts officer, and multiple private financiers in a single coordinated scheme suggests this was not opportunistic fraud — it was engineered.
NationPress
12 Aug 2026
Frequently Asked Questions
Who is Pushpinder Singh and why was he arrested?
Pushpinder Singh is a former Deputy Vice President of Kotak Mahindra Bank, arrested by the Enforcement Directorate on 1 June under the PMLA, 2002. He is accused of masterminding a ₹145 crore fraud against the Municipal Corporation, Panchkula, by opening fake bank accounts using forged documents to siphon government funds.
How was the ₹145 crore fraud carried out?
According to the ED, Singh allegedly conspired with a Kotak Mahindra Bank relationship manager and a former Municipal Corporation accounts officer to open two unauthorised accounts in the civic body's name using forged authorisation documents. Funds from genuine municipal accounts were then transferred to these fake accounts and routed through a network of private financiers.
Where does the money trail lead?
The ED says funds siphoned from the Municipal Corporation were transferred to financiers Rajat Dahra, Swati Tomar, Kapil Kumar, and Vinod Kumar — all allegedly acting under Singh's direction. The money was subsequently routed back to Singh and his wife Preeti Thakur, and also transferred to real estate firms and other private persons.
How long is Pushpinder Singh in ED custody?
A Special Judge (PMLA) in Panchkula remanded Singh to ED custody until 9 June, giving investigators time to question him and pursue the money trail further.
What triggered the ED's investigation?
The ED launched its PMLA probe based on an FIR registered by the Anti-Corruption Bureau (ACB), Haryana, against unknown officials of Kotak Mahindra Bank under the Bharatiya Nyaya Sanhita, 2023, and the Prevention of Corruption Act, 1988.
