E-Paper
Panchkula MC FDRs fraud: Ex-Kotak V-P, bizman under I-T scanner for dubious transactions
Sunny Garg, who recorded a statement under Section 132(4) of the Income Tax Act following a search raid on January 29, acknowledged financial dealings involving Pushpender
In a development that predates his April 8 surrender in connection with the multi-crore misappropriation of Panchkula municipal corporation (MC) funds, Pushpender Singh, the now suspended deputy vice-president of Kotak Mahindra Bank, had come under the income tax department’s radar for allegedly facilitating loans worth ₹70 crore to Chandigarh-based businessman Sunny Garg in a rather “suspicious manner”.
The Haryana State Vigilance & Anti-Corruption Bureau (ACB) on March 24 had registered an FIR at Panchkula in connection with the ₹150- ₹160 crore MC banking fraud involving the liquidation of the corporation’s fixed deposits (FDs) in Kotak Mahindra Bank using forged documents and fictitious accounts. Pushpender, the alleged mastermind of the fraud, has been in ACB custody since April 9.
A resident of Sector 2, Panchkula, Pushpender allegedly bought luxury vehicles worth ₹2.5 crore using the pilfered funds, probe has revealed.
It has now come to light that Sunny Garg, who recorded a statement under Section 132(4) of the Income Tax Act following a search raid on January 29, acknowledged financial dealings involving Pushpender. HT has seen Sunny’s statement, which was signed by Ankit Singh Rajput, assistant director of income tax (Investigation)-III, Gurugram. The questioning was primarily based on WhatsApp conversations between Sunny and Pushpender.
Sunny is the brother-in-law of Mayank Goyal, son of former Panchkula mayor and BJP leader Kulbhushan Goyal. When contacted, Kulbhushan Goyal said he had nothing to do with the case or Sunny Garg. “He is distantly related to me, being the brother of my daughter-in-law,” he said, adding that as mayor, he did not sign any document authorising deposits of corporation funds.
Loans routed via intermediaries at steep interest
During his deposition, Sunny told income tax officials that Pushpender facilitated loans worth about ₹70 crore for his financially struggling businesses through two private individuals, Rajat Dahra and Swati Tomar.
He said the loans carried an interest rate ranging between 1.25% and 1.5% per month. The total interest outflow ranged between ₹85 lakh and ₹1 crore per month, with an estimated ₹17-18 crore already repaid towards interest and principal.
Sunny stated that he primarily interacted with Pushpender for availing the loans and managing repayments, and had no direct contact with the actual lenders.
“I do not have any information regarding the identity of Rajat Dahra and Swati Tomar. Only Pushpender would be able to provide their credentials. I used to interact with Pushpender only regarding repayment,” he told income tax officials.
On the mode of repayment, Sunny said the principal was repaid through the accounts from which the loan was received, while interest was paid in cash to Pushpender as and when demanded.
The loans were taken for business entities related to him, including Sanat Realtors Pvt Ltd, Sanat Enterprises and Priyanka Garg, Sunny had told the income tax authorities.
On whether the loan transactions and interest payments were recorded in the books of accounts of these firms and disclosed in audit reports, Sunny said he could not provide details immediately. “These details are available with the accountant at my office which I will submit in due course of time,” he told officials.
Lenders already in ACB net
Rajat Dahra and Swati Tomar have already been arrested by the ACB in the Panchkula MC funds misappropriation case.
ACB officials said Rajat allegedly received over ₹60 crore from two bank accounts between 2020 and 2025 and transferred these funds to multiple other accounts. Swati, as per ACB, is the alleged beneficiary of ₹30-35 crore transferred into her account.
Bizman alleges threat to life
Two months after his statement to the income tax department, Sunny Garg on April 10 sent an email to the Punjab and Haryana high court registrar, the Panchkula chief judicial magistrate, ACB and Haryana Police, alleging a threat to his life from Pushpender.
He claimed that Pushpender threatened to kill him and his family, citing links with politicians, senior police officers and gangsters, forcing them to go into hiding for over a month. Sunny also alleged that he received a recorded abusive threat from Rajat Dahra.
In the email, he maintained that he was unaware of the source of funds, claiming Pushpender had described the money from Swati as proceeds from her husband’s factory and funds from Rajat as his business income.
Bank de-empanelled, probe on
After the Panchkula MC funds fraud came to light, the Haryana government on April 8 ordered de-empanelment of Kotak Mahindra Bank for conducting government business.
“No government funds shall henceforth be parked, deposited, invested or transacted through the said bank,” an order issued by the finance secretary stated.
In a March 27 communication to the National Stock Exchange, Kotak Mahindra Bank said it was examining the matter following instructions from the Panchkula MC and was cooperating with authorities.
