The Enforcement Directorate (ED) has arrested Pushpinder Singh, the former deputy vice president believed to be the mastermind behind the Rs 145 crore fraud at Kotak Mahindra Bank involving the Municipal Corporation in Panchkula. Singh was taken into custody under the Prevention of Money Laundering Act, 2002. A Special Judge in Panchkula has remanded Singh to the ED’s custody until June 9.
The ED initiated the investigation following an FIR filed by the ACB in Panchkula, Haryana, under relevant sections of the law against unidentified officials of Kotak Mahindra Bank. The probe revealed a complex criminal conspiracy where the Municipal Corporation lost Rs 145 crore to the fraudulent activities involving unknown bank officials. The investigation uncovered a nexus of Municipal Corporation officials, bank officials, and private individuals collaborating to divert government funds.
According to the ED, the investigation found that Dileep Kumar Raghav and Pushpinder Singh from Kotak Mahindra Bank, along with Vikas Kaushik from the Municipal Corporation, opened unauthorized bank accounts using forged documents in the name of the Municipal Corporation. Funds from legitimate accounts of the civic agency were then transferred to these illegal accounts through fake authorizations. The illegally transferred funds were further funneled to financiers under the direction of Pushpinder Singh.
The ED revealed that the funds received by these financiers from the fraudulent bank accounts were eventually routed back to Pushpinder Singh and his wife, Preeti Thakur. Additionally, these funds were also transferred to real estate companies and other private individuals as directed by Pushpinder Singh.
