Chandigarh: The Enforcement Directorate (ED), which is investigating the alleged fraud involving Kotak Mahindra Bank and the Panchkula Municipal Corporation (MC), has claimed that the alleged mastermind, Pushpinder Singh, used proceeds of crime to purchase a fleet of luxury vehicles. According to the agency, these include a Porsche Cayenne, BMW 740Li, BMW X7, BMW 749i, BMW Z4, two Jeep Wrangler SUVs (2021 and 2024 models), a Toyota Land Cruiser, and a Harley-Davidson motorcycle. The ED further alleged that the vehicles were sold to third parties after the fraud came to light. However, these allegations are yet to be tested in court, and the matter remains under judicial consideration.
The ED’s Chandigarh Zonal Office said it filed a prosecution complaint on July 30 under the Prevention of Money Laundering Act (PMLA), 2002, against nine accused persons. A day earlier, on July 29, the agency had issued a Provisional Attachment Order attaching movable and immovable assets worth ₹131.13 crore. The attached assets include bank balances of ₹12.85 crore and immovable properties valued at ₹118.28 crore.
The money laundering investigation stems from a First Information Report (FIR) registered by the Anti-Corruption Bureau (ACB), Panchkula, under various provisions of the Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act. The FIR alleges a criminal conspiracy involving officials of Kotak Mahindra Bank to embezzle funds belonging to the Panchkula Municipal Corporation.
According to the ED, Pushpinder Singh, who was serving as Deputy Vice President of 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 name of the Panchkula Municipal Corporation using forged documents and fabricated authorisation letters. The agency alleged that genuine communications and authorisation letters issued by the Municipal Corporation were ignored, while parallel forged documents were created to facilitate the opening and operation of the illegal accounts.
The ED further alleged that substantial sums were transferred from the Municipal Corporation’s genuine bank accounts into these unauthorised accounts. It also claimed that another bank employee, Satish Kumar, played a role in siphoning off the funds. During the investigation, the agency reportedly found that the mobile numbers and email IDs linked to both the genuine and fake Municipal Corporation accounts had been updated with contact details controlled by the accused, allegedly allowing them to bypass the bank’s internal verification and monitoring mechanisms.
According to the ED, the funds routed through the unauthorised accounts were subsequently transferred to several individuals, including Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar and Sonia, as well as entities such as S.K. Agrotech and S.K. Agrofirm. The agency alleged that these accounts were used for layering transactions and concealing the origin of the proceeds of crime. It further claimed that the money was eventually channelled into accounts linked to Pushpinder Singh, his wife Preeti Thakur and associated entities, from where luxury vehicles, high-value watches, furniture and other movable and immovable assets were allegedly acquired.
The ED also alleged that the proceeds of crime were used to extend unsecured loans to several individuals and business entities, with interest allegedly charged at the rate of three per cent per month (36 per cent annually), often collected in cash. The investigation further claims that Preeti Thakur’s income and the turnover and profitability of her company, Chaudhary & Sethi Legal Advisory Pvt. Ltd., increased significantly from the financial years 2022-23 and 2023-24 onwards, coinciding with the period of the alleged offence.
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 alleged that a property in Sector-2, Panchkula, was transferred to Pushpinder Singh’s sister through a “round-tripping” arrangement to conceal its ownership and shield it from attachment proceedings. The agency claims that ₹107.24 crore belonging to the Panchkula Municipal Corporation was retained and routed through the illegal accounts and beneficiary entities. Pushpinder Singh was arrested on June 1, 2026, and the investigation remains ongoing.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
