Panchkula: A major financial scam involving bank accounts and Fixed Deposit Receipts (FDRs) has surfaced in Panchkula, Haryana, raising serious concerns over financial oversight in public institutions. In a significant breakthrough, investigating authorities have arrested a municipal corporation official—marking the first government functionary to be nabbed in the multi-crore fraud case.
The accused, Vikas Kaushik, who was posted as a section officer in the municipal corporation, has been identified as a key figure in the scam. Investigators allege that he orchestrated a large-scale financial fraud in collusion with a bank manager, using forged documents and fake accounts to siphon off public funds.
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According to the investigation, Kaushik opened a fake bank account in the name of the municipal corporation in 2020. To facilitate this, he allegedly used official seals of senior officers, while their signatures were forged by the bank manager involved in the scheme. In 2022, another similar fraudulent account was opened using the same modus operandi, further expanding the scope of the scam.
Authorities revealed that the accused prepared fake debit notes for RTGS and NEFT transactions. Kaushik allegedly signed as an authorized signatory, while the second signature on these documents was forged. These fraudulent instruments were then used to transfer funds from municipal accounts into accounts controlled by the accused and their associates.
One of the most alarming findings in the case is the premature encashment of Fixed Deposits (FDs) belonging to the municipal corporation. The accused allegedly broke these deposits before maturity and diverted the funds into multiple accounts. The money was then routed through agents, relatives, and even builders, making it difficult to trace the financial trail.
The fraud remained undetected for a considerable period. When the municipal corporation sought details of its FDs and account balances in 2025 and 2026, it was discovered that the funds had already been withdrawn. To cover up the scam, the accused allegedly submitted forged bank statements and fake FD documents, misleading officials and delaying detection.
Investigators have indicated that multiple individuals were involved in the operation, including a bank relationship manager and other private persons. So far, four arrests have been made in connection with the case, while efforts are ongoing to identify and apprehend additional suspects.
Officials stated that Kaushik will be produced before a court and custodial interrogation will be sought to uncover the full extent of the conspiracy. The probe aims to trace the siphoned funds, identify all individuals involved, and determine the total financial loss incurred.
Preliminary findings suggest that this was not an isolated act but a well-planned and coordinated conspiracy involving insiders from both the municipal system and the banking sector. The use of forged documents, shell accounts, and layered transactions points to a sophisticated fraud mechanism.
The case has once again highlighted critical loopholes in financial monitoring and audit systems within government bodies. Experts believe that stronger verification processes, timely audits, and stricter compliance mechanisms could have prevented such large-scale misappropriation of public funds.
As the investigation progresses, authorities expect more revelations in the coming days. The scam underscores the urgent need for transparency, accountability, and robust financial governance in public sector operations.
