The Enforcement Directorate has carried out searches at 12 premises in Chandigarh, Panchkula, Zirakpur, Dera Bassi and Rajpura in Patiala district in connection with a money laundering case linked to the Kotak Mahindra Bank and Municipal Corporation Panchkula fraud.
In a statement, the agency said the searches were conducted on Wednesday and led to the seizure of sale-purchase agreements as well as various incriminating documents and evidence related to the alleged offence of money laundering. The case pertains to the alleged embezzlement of around ₹145 crore belonging to the Municipal Corporation Panchkula.
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Probe Linked to ACB FIR
The Enforcement Directorate said its investigation was initiated on the basis of an FIR registered by the Anti-Corruption Bureau, Panchkula, under relevant provisions of the Bharatiya Nyaya Sanhita, 2023, and the Prevention of Corruption Act, 1988.
According to the agency, the case involves the alleged siphoning off of municipal funds through a well-organised criminal conspiracy involving bank officials. The ED said its investigation has revealed a nexus involving municipal officials, bank officials and private individuals.
Fake Documents and Unauthorised Accounts
The agency alleged that fake and forged authorisation documents were used to open unauthorised bank accounts in the name of the Municipal Corporation Panchkula. Funds from genuine municipal accounts were then allegedly diverted into these accounts.
The ED further said the diverted funds were routed through various entities and individuals before being transferred to private persons and real estate firms. It also alleged that forged fixed deposit receipts were issued to the Municipal Corporation showing investments of more than ₹145 crore.
Evidence Seized During Searches
According to the agency, the searches were conducted at premises linked to the accused persons and resulted in the seizure of incriminating evidence.
The Enforcement Directorate said the material recovered during the operation includes sale-purchase agreements and other documents connected to the alleged laundering of funds. The investigation in the case is continuing.
