The Enforcement Directorate (ED) arrested Pushpinder Singh, former Deputy Vice President of Kotak Mahindra Bank, on Monday under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002. According to reports from NDTV Profit, Singh is alleged to be the mastermind behind the fraud and was taken into custody as part of the ongoing investigation into the Panchkula Municipal Corporation fund embezzlement case. The Directorate of Enforcement (ED), Chandigarh zonal unit, arrested Singh on June 1, 2026, marking a significant development in the case. The ED stated that Singh's role emerged during its investigation into the alleged misappropriation of Panchkula Municipal Corporation funds and subsequent financial transactions linked to the case. A special PMLA court in Panchkula has granted ED custody of Pushpinder Singh for nine days till June 9, 2026.
The money laundering investigation stems from an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, Haryana, under various provisions of the Bharatiya Nyaya Sanhita (BNS), 2023, and the Prevention of Corruption Act, 1988. As reported by NDTV Profit, investigators suspect that a well-organised conspiracy involving bank officials and others led to the diversion and misappropriation of funds belonging to the Municipal Corporation, Panchkula. The ED has alleged that forged documents and unauthorized banking transactions were used to siphon off public money, causing significant losses to the civic body. Preliminary findings reportedly indicated that public money may have been transferred through unauthorized transactions and diverted to accounts not intended for official purposes, prompting a wider investigation under anti-money laundering laws. According to the ED, the investigation has so far revealed a "closed criminal nexus of municipal corporation officials, bank officials and private persons" that allegedly hatched a conspiracy to siphon off government funds.
The FIR was filed against unidentified officials of Kotak Mahindra Bank over allegations of large-scale financial irregularities involving municipal funds. According to NDTV Profit, the case involves ₹145 crore in alleged fraud and represents one of the most significant banking fraud cases in recent years. The ED investigation has revealed that a nexus involving municipal officials, bank officials and private persons allegedly conspired to siphon government funds. The probe found that Dileep Kumar Raghav, Customer Relationship Manager at Kotak Mahindra Bank, along with Pushpinder Singh and Vikas Kaushik, a former senior accounts officer of Municipal Corporation, Panchkula, allegedly opened two bank accounts in the name of the municipal body using forged and fake authorisation documents. The case involves funds from legitimate accounts of the Municipal Corporation being transferred to unauthorised accounts using forged fund migration authorisation letters. The ED alleged that "the funds of MC, Panchkula available in genuine accounts were transferred to unauthorised and illegal accounts using forged and fake fund migration authorisation letters in the name of MC, Panchkula."
According to the ED investigation, the diverted funds were transferred to several financiers, including Rajat Dahra, Swati Tomar, Kapil Kumar and Vinod Kumar, with these individuals allegedly operating under Singh's control. The agency further alleged that bank accounts used by Rajat Dahra and Swati Tomar for siphoning a substantial portion of the municipal funds were also controlled by Singh. The ED stated that "the funds received by these financiers from the fake MC Panchkula accounts were routed back to Singh and his wife, Preeti Thakur." Part of the funds was also allegedly diverted to real estate firms and other private individuals based on Singh's directions. The probe found that funds were allegedly routed back to Pushpinder Singh and his wife, Preeti Thakur, and further transferred to real estate firms and other private persons based on his directions. The ED stated that "the accounts of Rajat Dahra and Swati Tomar, used for siphoning municipal funds, were also under his control."
The Special Judge (PMLA), Panchkula, has granted ED custody of Pushpinder Singh for nine days till June 9, 2026. The investigation has revealed that funds were allegedly routed to several individuals, including Rajat Dahra, Swati Tomar, Kapil Kumar and Vinod Kumar, with these individuals acting under Singh's control. The ED stated that "the funds received by these financiers from the fake MC Panchkula accounts were routed back to Singh and his wife, Preeti Thakur." The probe found that funds were allegedly routed back to Pushpinder Singh and his wife, Preeti Thakur, and further transferred to real estate firms and other private persons based on his directions. The ED stated that "the accounts of Rajat Dahra and Swati Tomar, used for siphoning municipal funds, were also under his control." Further investigation is in progress as the agency continues to examine the complex web of financial transactions and alleged money routing networks, with the Special Court (PMLA), Panchkula, granting nine days' custody for the ongoing investigation.
