The Enforcement Directorate (ED) has filed a comprehensive prosecution complaint against nine individuals, including former Kotak Mahindra Bank Deputy Vice President Pushpinder Singh, in connection with an alleged ₹107 crore fraud involving the Municipal Corporation (MC) Panchkula. Singh is accused of orchestrating a scheme to siphon public funds, which he then used to acquire a lavish lifestyle, including multiple luxury vehicles and properties.
ED Attaches ₹131 Crore in Assets
In a significant development, the ED announced the attachment of assets valued at ₹131.13 crore. This sum represents the total proceeds of crime, which includes the original ₹107.24 crore embezzled from MC Panchkula and additional interest allegedly earned by Singh from advancing these siphoned funds as high-interest loans. The attached assets comprise bank balances totaling ₹12.85 crore and immovable properties worth ₹118.28 crore.
How the Fraud Unfolded
The investigation by the ED commenced following an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula. According to the agency, Pushpinder Singh, in collusion with MC Panchkula official Vikas Kaushik and Kotak employee Dilip Raghav, established two unauthorized bank accounts under the guise of the civic body. This was achieved using forged documents and counterfeit authorization letters.
The elaborate scheme involved ignoring genuine communications from MC Panchkula while fabricating fake letters to divert funds from the corporation's legitimate accounts into these illicit ones. Furthermore, the mobile numbers and email IDs linked to both the genuine and fraudulent accounts were altered to be controlled by Singh and Kaushik, effectively bypassing the bank's internal security protocols and enabling the approval of fraudulent transactions. Another Kotak employee, Satish Kumar, was also implicated in the alleged siphoning.
Luxury Purchases and Money Laundering
Once the funds reached the unauthorized accounts, they were systematically routed through a network of individuals and firms, including Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar, Sonia, SK Agrotech, and SK Agrofirm. This layering was designed to obscure the origin of the illicit money. The ED alleges that accounts operated by Dahra and Tomar were effectively under Pushpinder Singh's control, with funds eventually transferred to his personal accounts and those of his wife, Preeti Thakur.
Singh allegedly used these ill-gotten gains to purchase a fleet of luxury vehicles, including a Porsche Cayenne, BMW 740Li, BMW X7, BMW 749i, BMW Z4, two Jeep Wranglers (2021 and 2024 models), a Toyota Land Cruiser, and a Harley-Davidson motorcycle. Many of these vehicles were reportedly sold after the fraud came to light. He also sold a property in Sector 2, Panchkula, to his sister Gunita Sethi, with funds reportedly coming from his wife's firm in what the ED describes as a "round-tripping" arrangement to conceal ownership.
High-Interest Loans and Wife's Firm Under Scrutiny
The ED further alleges that Singh advanced unsecured loans to various individuals and companies using the siphoned money, charging an exorbitant 3% interest per month, equating to 36% annually, often collected in cash. Investigations also revealed a significant increase in the income of Singh's wife, Preeti Thakur, and a sharp rise in the turnover and profits of her company, Chaudhary & Sethi Legal Advisory Pvt. Ltd., from the fiscal year 2023-24 onwards. The agency suspects this firm was utilized to dispose of assets acquired through the alleged proceeds of crime.
Pushpinder Singh was arrested on June 1, 2026, and subsequently remanded to nine days of custodial interrogation by the Special PMLA Court in Panchkula. The ED's swift action resulted in the attachment of 100% of the embezzled funds within four months of the initial FIR being registered.