The Enforcement Directorate (ED), which is investigating an alleged fraud involving Kotak Mahindra Bank and the Panchkula Municipal Corporation (MC), has claimed that the alleged mastermind, Pushpinder Singh, used the proceeds of crime to buy a fleet of luxury vehicles — including a Porsche Cayenne, BMW 740Li, BMW X7, BMW 749i, BMW Z4, two Jeep Wranglers, a Toyota Land Cruiser, and even a Harley-Davidson motorcycle. The ED alleges these vehicles were later sold off to third parties once the fraud came to light. It's worth noting these allegations are still to be tested in court, and the case remains under judicial consideration.
Assets Worth Over ₹131 Crore Attached
The ED's Chandigarh Zonal Office filed a prosecution complaint on July 30 under the PMLA against nine accused. Just a day earlier, on July 29, the agency had issued a Provisional Attachment Order attaching movable and immovable assets worth ₹131.13 crore — including ₹12.85 crore in bank balances and immovable properties valued at ₹118.28 crore.
How the Alleged Fraud Started
The money laundering probe traces back to an FIR filed by the Anti-Corruption Bureau (ACB), Panchkula, alleging a criminal conspiracy involving Kotak Mahindra Bank officials to embezzle funds belonging to the Panchkula Municipal Corporation. According to the ED, Pushpinder Singh — who was Deputy Vice President at the bank at the time — allegedly conspired with Municipal Corporation official Vikas Kaushik and bank employee Dilip Raghav to open two unauthorised bank accounts in the Corporation's name, using forged documents and fake authorisation letters. Genuine communications from the Municipal Corporation were reportedly ignored, while parallel forged paperwork was created instead to get these illegal accounts up and running.
Money Moved Through a Web of Accounts
The ED alleges substantial sums were transferred from the Municipal Corporation's genuine accounts into these unauthorised ones, with another bank employee, Satish Kumar, allegedly playing a role in siphoning off the funds. Investigators reportedly found that the mobile numbers and email IDs linked to both the real and fake accounts had been updated with contact details controlled by the accused — effectively letting them bypass the bank's own internal verification and monitoring checks.
From there, the funds were allegedly routed to several individuals — Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar, and Sonia — as well as entities like S.K. Agrotech and S.K. Agrofirm, allegedly to layer the transactions and hide where the money actually came from. Eventually, the ED claims, the money was channelled into accounts linked to Pushpinder Singh, his wife Preeti Thakur, and related entities, from where the luxury vehicles, high-value watches, furniture, and other assets were allegedly purchased.
Loans, Interest, and a Suspicious Business Surge
Interestingly, the ED also alleges that some of the proceeds were used to extend unsecured loans to individuals and businesses, charging interest at a steep 3% per month (36% annually) — often collected in cash. A detailed auditing services in India-style financial review by investigators reportedly found that Preeti Thakur's income, along with the turnover and profitability of her company, Chaudhary & Sethi Legal Advisory Pvt. Ltd., increased significantly from financial years 2022-23 and 2023-24 onwards — a timeline that lines up closely with the period of the alleged offence.
Property Transfers and Ongoing Investigation
According to the agency, searches conducted on April 22 under Section 17 of the PMLA led to the seizure of incriminating documents and digital evidence. The ED also alleges that a property in Sector-2, Panchkula, was transferred to Pushpinder Singh's sister through what it describes as a "round-tripping" arrangement — essentially a move meant to hide ownership and protect the property from being attached. In total, the agency claims ₹107.24 crore belonging to the Panchkula Municipal Corporation was retained and routed through these illegal accounts and beneficiary entities. Pushpinder Singh was arrested on June 1, 2026, and the investigation remains ongoing.
FAQs
Q1. How much money has been attached so far in the Kotak-Panchkula fraud case?
The ED has attached assets worth ₹131.13 crore, including ₹12.85 crore in bank balances and ₹118.28 crore in immovable properties.
Q2. How did the accused allegedly open unauthorised bank accounts?
Pushpinder Singh allegedly conspired with a Municipal Corporation official and a bank employee to open unauthorised accounts using forged documents and fake authorisation letters in the Corporation's name.
Q3. How much money is the ED alleging was diverted from the Panchkula Municipal Corporation?
The ED claims approximately ₹107.24 crore belonging to the Municipal Corporation was retained and routed through illegal accounts and beneficiary entities.