The Enforcement Directorate (ED) has filed a prosecution complaint under Sections 44 and 45 of the Prevention of Money Laundering Act (PMLA) against nine accused persons in connection with the alleged money laundering case. According to the latest reports, the ED arrested Pushpinder Singh on June 1, 2026, who was remanded to nine days of custodial interrogation by the Special PMLA Court in Panchkula. The agency has also attached 100% of the embezzled funds within four months of the FIR being registered, demonstrating swift action in recovering the stolen assets. The ED filed the chargesheet on July 30, 2026 before a PMLA court, marking a significant development in the ongoing investigation.
The Enforcement Directorate (ED) has attached assets worth ₹131.13 crore as part of its investigation into a major fraud involving the Municipal Corporation of Panchkula. According to the ED, the attachment comprises ₹12.85 crore in bank balances and ₹118.28 crore in properties, representing the ₹107.24 crore allegedly diverted into fake accounts along with interest earned on those funds. The federal anti-money laundering agency announced this development on August 5, 2026 as part of its ongoing probe into the alleged fraud. The ED pegged the total defrauded sum at ₹107.24 crore, with the agency stating that it has also attached assets worth ₹131 crore in the case.
According to the ED, Pushpinder Singh, then deputy vice-president at Kotak Mahindra Bank, conspired with Vikas Kaushik, an official of Municipal Corporation of Panchkula, and Dilip Raghav, a Kotak Mahindra Bank employee, to open two unauthorized bank accounts in the municipal body's name using forged documents and fabricated authorizations. The agency alleged that funds held in Panchkula MC's legitimate accounts with Kotak Mahindra Bank were transferred into these unauthorized accounts through fake authorization letters. The ED stated that all genuine communications, authorisation letters and instructions sent by the municipal corporation of Panchkula were disregarded, and a series of parallel authorisation letters were created by Singh and Kaushik, with the support of others, for the purpose of opening these two illegal accounts. The agency claimed Satish Kumar of Kotak Mahindra Bank was also involved in this fraud, with the move made to circumvent the checks and balances prescribed in Kotak Mahindra Bank's Standard Operating Procedures (SOPs) for the prevention of unauthorised bank transfers.
The ED alleged that Singh used the diverted funds to purchase luxury assets including a Porsche Cayenne, BMW Z4, BMW 740LI, BMW X7, BMW 749i, Jeep Wrangler (2021 and 2024 models), Toyota Land Cruiser, and Harley-Davidson motorcycles. According to the agency, many of these vehicles were sold to third parties after the alleged fraud came to light. The case also involves Singh extending unsecured loans to individuals including Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar, and Sonia, and to entities including SK Agrotech and SK Agrofirm. These loans carried cash interest payments of 36% annually. The ED alleged that accounts operated by Rajat Dahra and Swati Tomar were effectively controlled by Pushpinder Singh, with the money later transferred to his personal accounts and accounts belonging to his wife Preeti Thakur. Some of the funds were also used to purchase luxury watches and furniture.
The ED alleged that Singh sold properties in Sector 2, Panchkula, after the fraud was detected, to his sister Gunita Sethi. According to the ED, the transaction was funded by Sethi through money received from Chaudhary & Sethi Legal Advisory, a firm owned by Singh's wife Preeti Thakur. The agency said the transaction was funded by Chaudhary & Sethi Legal Advisory, a firm owned by Singh's wife Preeti Thakur, in what it described as a round-tripping arrangement to conceal ownership. The ED stated that this round-tripping of funds was done with an intent to disguise the ownership of these properties for the purpose of alienation from attachments under provisions of PMLA. The investigation found an abnormal rise in Thakur's income from FY23 and a significant increase in the turnover and profits of her firm from FY24 onwards, coinciding with the alleged fraud period. The ED alleged that the firm was used to dispose of assets acquired using the alleged proceeds of crime.
The case stems from discrepancies detected in deposits and bank accounts maintained by the Municipal Corporation of Panchkula with Kotak Mahindra Bank. According to a PTI report dated 26 March, the case was detected from discrepancies in deposits and bank accounts maintained by the Municipal Corporation of Panchkula with Kotak Mahindra Bank. On 2 May, Kotak Mahindra Bank's whole-time director Anup Kumar Saha told analysts that the ED was investigating the case and that the preliminary first information report (FIR) pointed to alleged embezzlement involving officials of the municipal corporation, bank employees and private individuals. The bank stated it was cooperating with relevant authorities. The ED initiated a probe under PMLA after taking over an FIR filed by the Haryana Anti-Corruption Bureau (ACB) on charges of embezzlement of funds belonging to the Panchkula municipal corporation through a "deep-rooted and well-organised" criminal conspiracy. The agency claimed these funds were transferred to people and entities linked to the duo, including to Singh's wife Preeti Thakur, with the money later transferred to his personal accounts and accounts belonging to his wife.
