Tightening its grip on the alleged siphoning of municipal corporation (MC) Panchkula funds, the Directorate of Enforcement (ED) has filed a prosecution complaint against nine accused under the Prevention of Money Laundering Act (PMLA) in Panchkula court and attached assets worth ₹131.13 crore, claiming to have secured 100% of the embezzled civic funds within four months of the registration of the FIR.
The action stems from the multi-crore Kotak Mahindra Bank fraud case, in which ED is probing the laundering of ₹107.24 crore allegedly siphoned off from MC Panchkula through unauthorised bank accounts.
According to the ED, the investigation revealed that Pushpinder Singh, then deputy vice president of Kotak Mahindra Bank, in connivance with MC official Vikas Kaushik and bank employee Dilip Raghav, opened two unauthorised bank accounts in the name of MC Panchkula using forged documents and fake authorisation letters. Funds from the corporation’s genuine accounts were allegedly diverted into these accounts by bypassing the bank’s standard operating procedures.
The agency alleged that mobile numbers and email IDs linked to both the fake and genuine MC accounts were altered to those controlled by the accused, allowing fraudulent transactions to be executed without triggering the bank’s internal checks.
The siphoned money was allegedly layered through several intermediaries, including Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar and Sonia, besides firms such as S.K. Agrotech and S.K. Agrofirm, before being routed into personal accounts and investments.
{{/usCountry}}The siphoned money was allegedly layered through several intermediaries, including Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar and Sonia, besides firms such as S.K. Agrotech and S.K. Agrofirm, before being routed into personal accounts and investments.
{{/usCountry}}ED claimed that Pushpinder Singh used the proceeds of crime to acquire luxury assets, including a Porsche Cayenne, BMW 740Li, BMW X7, BMW Z4, Land Cruiser, Harley-Davidson motorcycles and Jeep Wrangler SUVs. Investigators also alleged that after the fraud surfaced, he sold some vehicles and transferred Sector-2 properties in Panchkula to his sister through funds routed via a company owned by his wife, Preeti Thakur, in an attempt to conceal ownership and prevent attachment.
The investigation further found that part of the allegedly diverted money was advanced as unsecured loans to individuals and private entities at an interest rate of 3% per month in cash. ED also alleged a sharp rise in the income of Pushpinder Singh’s wife and the turnover of her company, M/s Chaudhary & Sethi Legal Advisory Pvt. Ltd., during the period of the alleged offence.
Under a Provisional Attachment Order, the ED has attached bank balances worth Rs12.85 crore and immovable properties valued at ₹118.28 crore, taking the total attachment to ₹131.13 crore. The agency said the attachment represents the entire amount allegedly embezzled from MC Panchkula along with the proceeds generated from it.
The prosecution complaint has been filed against nine accused under Sections 44 and 45 of the PMLA. ED said further investigation into the money trail and the involvement of other persons is continuing.