The Enforcement Directorate (ED), Chandigarh Zonal Unit, has arrested Pushpinder Singh, the former deputy vice president of Kotak Mahindra Bank, for his alleged role as the mastermind behind a massive multi-crore financial fraud involving the municipal corporation (MC) of Panchkula. Singh was apprehended under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002. Following his arrest, the special court (PMLA) in Panchkula granted the federal probe agency a 9-day custody of the accused to allow for deeper interrogation into the money trail.

Well-organised criminal nexus

The money laundering probe stems from a primary first information report (FIR) registered by the Haryana anti-corruption bureau (ACB). Investigators uncovered a deep-rooted, well-organized criminal conspiracy involving bank officials, municipal employees, and private financers who systematically embezzled approximately ₹145 crore of public funds.

According to the ED, Pushpinder Singh colluded closely with Dileep Kumar Raghav, a customer relationship manager at Kotak Mahindra Bank, and Vikas Kaushik, the former senior accounts officer of MC Panchkula. Together, the trio used forged and fake authorization letters, corporate seals, and signatures to open unauthorised bank accounts in the name of the municipal corporation. Genuine public funds and fixed deposits meant for city development were then covertly migrated into these fraudulent accounts, entirely bypassing the bank’s internal approval mechanisms through unauthorised electronic communication.

Multi-layered siphoning and luxury assets

Once the government funds were transferred into the illegal accounts, they were routed to a network of private financers operating directly under Singh’s instructions, including Rajat Dahra, Swati Tomar, Kapil Kumar, and Vinod Kumar. The ED revealed that bank accounts belonging to Dahra and Tomar were heavily utilised to siphon off the bulk of the municipal funds.

A massive portion of the embezzled money was allegedly layered and routed back into the personal accounts of Pushpinder Singh and his wife, Preeti Thakur. Millions were further diverted into various real estate firms and private individuals. Previous local investigations revealed that Singh personally pocketed over ₹30 crore from the scam, using the proceeds of crime to acquire high-end luxury assets, including a Mercedes GLS SUV, a Jeep Wrangler Rubicon, and a luxury motorcycle. The ED is currently tracing the remaining funds, and further assets are expected to be attached as the investigation progresses.