In the ₹145-crore fixed deposit (FD) fraud involving Panchkula Municipal Corporation (MC), the local court on Monday granted seven-day police remand of main accused Rajat Dahra. The case is being probed by Haryana’s State Vigilance and Anti-Corruption Bureau (ACB). Preliminary examination of bank accounts revealed that Dahra allegedly, along with other accused, transferred over ₹70 crore into his personal accounts.
Background and Arrests
The case revolves around serious irregularities in FDs maintained by Panchkula MC with Kotak Mahindra Bank, Sector 11. An FIR was registered on March 25 under the Prevention of Corruption Act and provisions of the Indian Penal Code. On the same day, the bank’s relationship manager Dilip Raghav was arrested. Rajat Dahra was arrested on March 26. Raghav remains in ACB remand for four days and is allegedly a co-conspirator in the fraudulent transactions.
Investigators noted that the case involves a multi-layered conspiracy, making custodial interrogation of the accused essential.
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Bank Account Discrepancies and Undisclosed Accounts
The probe revealed that Panchkula MC had 16 FDs totalling ₹145.03 crore, with a maturity value of ₹158.02 crore. Eleven FDs worth ₹59.57 crore matured on February 16, 2026, but the bank statement showed only ₹2.17 crore. A report dated March 18 showed a balance of ₹12.85 crore with no active FDs. Two additional accounts were discovered which were not part of official records. These discrepancies pointed to possible financial manipulation and collusion.
Alleged Benefits for Rajat Dahra and Money Trail
Investigators found that Dahra allegedly transferred over ₹70 crore into his personal accounts. According to ACB, the remand was necessary to trace the entire money trail and identify beneficiaries.
The investigation focuses on:
- Understanding the modus operandi of fund diversion.
- Identifying the network among bank officials, public servants, and private individuals.
- Tracing and freezing accounts linked to the fraud.
- Recovering assets, documents, and digital evidence derived from the crime.
Government Action and Reforms
The Haryana government referred the case to ACB following directions from the finance department. Panchkula MC has formed a committee to reconcile and verify all FDs and bank accounts. The bureau aims not only to uncover this fraud but also to investigate other potential scams carried out using the same network. The ACB informed the court that the digital and banking records review would determine cash and asset flows and help identify all individuals involved.
Next Steps and Wider Implications
Investigators are reviewing digital and banking documents in detail. Panchkula MC and the state government are also focusing on improving banking and financial procedures. Experts suggest that this fraud raises serious questions about local administrative accountability and signals systematic large-scale financial mismanagement.
The bureau’s priority is to ensure that all traced funds and assets are accounted for, safeguarding taxpayers’ money.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
