The Enforcement Directorate (ED) has issued a provisional attachment order seizing assets worth ₹131.13 crore and filed a comprehensive prosecution complaint against nine individuals in connection with a multi-crore fund embezzlement scam involving Kotak Mahindra Bank and the Municipal Corporation (MC) of Panchkula. The central anti-money laundering agency confirmed that the attached properties cover 100% of the siphoned public funds, successfully securing the proceeds of crime within four months of the initial law enforcement crackdown.
The legal action targets key mastermind Pushpinder Singh, former Deputy Vice President and Branch Manager at Kotak Mahindra Bank, alongside co-conspirators including former MC Panchkula Senior Accounts Officer Vikas Kaushik, bank relationship manager Dileep Kumar Raghav, and bank official Satish Kumar. Filed before the Special PMLA Court in Panchkula under Sections 44 and 45 of the Prevention of Money Laundering Act (PMLA), 2002, the prosecution complaint details a deeply entrenched criminal network that systematically compromised institutional banking controls.
Systemic Infiltration and Compromised Internal Checks
The money laundering probe stems from an initial FIR lodged by the Anti-Corruption Bureau (ACB), Panchkula, under applicable provisions of the Bharatiya Nyaya Sanhita (BNS), 2023, and the Prevention of Corruption Act, 1988. The fraud came to light when civic officials attempted to liquidate maturing fixed deposits worth tens of crores, only to discover severe discrepancies between municipal ledger books and internal bank records.
According to the ED’s findings, Pushpinder Singh and Vikas Kaushik conspired to establish two unauthorized bank accounts in the name of MC Panchkula using fabricated board resolutions and forged authorization letters. To bypass Kotak Mahindra Bank’s mandatory verification procedures, the duo altered the official mobile numbers and email addresses associated with both genuine and fake civic accounts. All official transaction alerts, verification calls, and fund transfer requests were routed directly to channels controlled by the accused, rendering standard audit trails ineffective and facilitating the illegal migration of over ₹107.24 crore from legitimate municipal fixed deposits.
Fund Layering, High-Interest Lending, and Luxury Fleet Purchases
Once public funds were transferred into the fraudulent accounts, the syndicate executed a complex layering strategy to mask the paper trail. Illicit capital was routed through a network of shell accounts and intermediary entities, including SK Agrotech, SK Agrofirm, and personal accounts held by associates Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar, and Sonia. Investigators established that accounts registered under Dahra and Tomar were operationally managed by Pushpinder Singh.
A substantial portion of the siphoned capital was subsequently funneled into personal accounts belonging to Pushpinder Singh and his wife, Preeti Thakur. Financial analysis revealed that siphoned funds were actively deployed to finance high-yielding, illegal money-lending operations. Singh allegedly advanced unsecured loans to private individuals and real estate developers at exorbitant cash interest rates of 3% per month (36% annually). The illegal cash interest generated from these loans accounted for the additional ₹23.89 crore included in the ED’s total proceeds-of-crime assessment.
The embezzled wealth funded an extravagant lifestyle for the primary accused. The ED’s investigation revealed that Singh acquired a fleet of high-end automobiles using illicit funds, including a Porsche Cayenne, BMW 740Li, BMW X7, BMW Z4, Jeep Wranglers, a Toyota Land Cruiser, and a Harley-Davidson motorcycle. Furthermore, proceeds were channeled into Preeti Thakur’s firm, M/s Chaudhary & Sethi Legal Advisory Pvt. Ltd., which recorded an unprecedented surge in turnover and profits during the period of the offense.
Round-Tripping Attempts, Asset Seizures, and Legal Proceedings
Following initial media reports and the registration of the ACB FIR, the accused initiated hasty countermeasures to conceal assets and evade regulatory attachment. Singh liquidated several luxury vehicles to third parties and attempted to alienate real estate properties located in Sector 2, Panchkula. Investigators uncovered a round-tripping scheme wherein property transfers executed in favor of Singh’s sister, Gunita Sethi, were secretly financed using funds routed from his wife’s legal advisory firm.
Neutralizing these diversionary tactics, the ED’s Chandigarh Zonal Unit executed a series of search operations, culminating in Pushpinder Singh’s arrest under Section 19 of the PMLA. The agency’s Provisional Attachment Order under Section 5(1) encompasses ₹12.85 crore in frozen bank balances and 33 immovable properties valued at ₹118.28 crore.
Law enforcement officials emphasized that judicial proceedings are being expedited to ensure full recovery of the civic body’s public exchequer. Further forensic scrutiny of banking records, real estate holdings, and shell corporate structures remains underway to determine if additional co-conspirators facilitated the money laundering framework.
