Pushpinder Singh and Vikas Kaushik transferred the funds of MC Panchkula lying in its genuine accounts with Kotak Mahindra Bank to the unauthorised accounts through fake authorisation letters
FinTech BizNews Service
Mumbai, 6 August, 2026: Directorate of Enforcement (ED), Chandigarh Zonal Unit, has filed a Prosecution Complaint on 30/7/2026 against nine accused persons and issued a Provisional Attachment Order (PAO) under provisions of the Prevention of Money Laundering Act (PMLA), 2002 on 29/7/2026 in the Kotak Mahindra Bank Fraud Case.
ED initiated investigation on the basis of FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, Haryana, under various Sections of the Bharatiya Nyaya Sanhita, 2023, and the Prevention of Corruption Act, 1988, against unknown officers/officials of Kotak Mahindra Bank.
The FIR reveals the embezzlement of funds belonging to the Municipal Corporation, Panchkula, through a deep-rooted and well-organised criminal conspiracy by unknown bank officials. ED investigation revealed that Pushpinder Singh, then Deputy Vice President of Kotak Mahindra Bank, in connivance with Vikas Kaushik, an official of MC Panchkula, and with the connivance of Dilip Raghav, employee of Kotak Mahindra Bank, opened two unauthorised bank accounts in the name of MC Panchkula by using a series of fake documents and authorisations purportedly on behalf of MC Panchkula, as required under the internal Standard Operating Procedures (SOPs) of Kotak Mahindra Bank for the opening of accounts. All genuine communications, authorisation letters and instructions sent by MC Panchkula were disregarded, and a series of parallel authorisation letters were created by Pushpinder Singh and Vikas Kaushik, with the support of others, for the purpose of opening these two illegal accounts. Thereafter, they transferred the funds of MC Panchkula lying in its genuine accounts with Kotak Mahindra Bank to these unauthorised accounts through fake authorisation letters created in the name of MC Panchkula.
It is also learnt that, Satish Kumar of Kotak Mahindra Bank is also been involved in this fraud of syphoning of funds of MC Panchkula. It is pertinent to note that the mobile numbers and email IDs linked to these two fake accounts, as well as those of the genuine accounts in the name of MC Panchkula, were updated with mobile numbers and email IDs that were under the effective control of Vikas Kaushik and Pushpinder Singh, in order to circumvent the checks and balances prescribed in the SOPs of Kotak Mahindra Bank for the prevention of unauthorised bank transfers. In this manner, the entire system of checks and balances was completely compromised by the collusive actions of Pushpinder Singh of Kotak Mahindra Bank and Vikas Kaushik of MC Panchkula, with the support of others. All the requisite confirmations required to authorise such illegal transactions relating to the fake and forged authorisation letters were sent to the mobile numbers and email IDs controlled by Vikas Kaushik to ensure the seamless execution of the fraud. Once the funds were received in these two unauthorised bank accounts opened by Pushpinder Singh and Vikas Kaushik in the name of MC Panchkula, the funds were further transferred to persons such as Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar and Sonia, and to entities such as S.K. Agrotech and S.K. Agrofirm, for further layering of the funds and to disguise the source of the Proceeds of Crime. These transfers were also effected by Pushpinder Singh and Vikas Kaushik through a series of fake and forged documents in the name of MC Panchkula in order to satisfy the internal procedures prescribed by Kotak Mahindra Bank. The accounts of intermediaries such as Swati Tomar and Rajat Dahra were under the effective control of Pushpinder Singh. These accounts were used by Pushpinder Singh to transfer the illegally received funds of MC Panchkula to his personal accounts, those of Preeti Thakur (wife of Pushpinder Singh), and for the purchase of immovable properties as well as movable properties such as luxury cars, watches and furniture. Further, these funds were also utilised by Pushpinder Singh for advancing unsecured loans to individuals such as Sunny Garg, Priyanka Garg, Samar Mohan Ranga and Aryan Singh, and to entities such as M/s Sanat Realtors Pvt. Ltd., M/s Central Infradevelopers, M/s Sanat Ventures Enterprises LLP, M/s Savage Rechords Pvt. Ltd. and M/s Sanat Enterprises Pvt. Ltd., in return for very high interest payments (i.e., @ 3% per month or 36% per annum) in cash. The PMLA investigation has also established that there was an abnormal increase in the income of Preeti Thakur, wife of Pushpinder Singh, from FY 2022-23 onwards, and a significant growth in the turnover and profits of her firm, M/s Chaudhary & Sethi Legal Advisory Pvt. Ltd., from FY 2023- 24 onwards, which coincides with the period of the offence in the Kotak Mahindra Bank Fraud Case. This firm was used by Pushpinder Singh for the disposal of movable and immovable properties acquired from the Proceeds of Crime, i.e., the illegally acquired funds of MC Panchkula. During the course of the PMLA investigation, searches under Section 17(1) of the PMLA, 2002, were conducted on 22.04.2026 at the premises of Pushpinder Singh, Rajat Dahra, Dileep Kumar Raghav, Vikas Kaushik, Sanat Realtors, Sunny Garg and Kapil Kumar, resulting in the seizure of incriminating evidence and documents. During investigation, it was learnt that, the Pushpinder Singh had purchased many luxury vehicles like Porsche Cayenne, BMW 740LI, BMW X7, BMW 749I, Jeep Wrangler 2021, Jeep Wrangler 2024, BMW Z4, Land Cruiser, Harley Davidson, out of the proceeds of crime which had been syphoned off from the funds of MC Panchkula. During investigation it has been found that the vehicles have been sold off to the third parties after the fraud has been detected. Further, Pushpinder Singh has also deliberately sold the properties of Sector 2, Panchkula after the detection of this fraud, to his own sister Gunita Sethi against the funds which were received by Gunita Sethi from firm of Preeti Thakur wife of Pushpinder Singh i.e. M/s Chaudhary & Sethi Legal Advisory Pvt. Ltd itself. This round tripping of funds were done with an intent to disguise the ownership of these properties for the purpose of alienation from attachments under provisions of PMLA. By committing the above-mentioned crime, total net funds of MC Panchkula amounting to Rs. 107.24 Crore have been retained in the illegal accounts in the name of MC Panchkula and in the accounts of intermediaries and beneficiaries. The accused person Pushpinder Singh illegally earned huge interest out of the above funds syphoned off from MC Panchkula and advanced as unsecured loans.
Therefore, in the instant case, the total value of the proceeds of crime provisionally attached under the Provisional Attachment Order (PAO) issued under Section 5(1) of the PMLA, 2002, is Rs. 131.13 Crore. In effort, this sum of 131.13 Crore consists of bank balances of Rs 12.85 Crore and immovable properties worth of Rs. 118.28 Crore. This constitutes the 100% of the embezzled funds of MC Panchkula as well as the portion of cash interest payments made to Pushpinder Singh by the entities of Sunny Garg and Samar Mohan Ranga against the unsecured loans advanced by Pushpinder Singh. ED has successfully made attachments of 100% of the embezzled funds of MC Panchkula within a span of four months from the registration of the FIR by the LEA.
Further, in the instant case, the mastermind Pushpinder Singh, former Branch Manager of Kotak Mahindra Bank, who played a pivotal role in the opening of unauthorised bank accounts in the name of MC Panchkula, the transfer of funds of MC Panchkula from genuine accounts to these unauthorised and illegal bank accounts, the further layering of funds to intermediaries such as Rajat Dahra and Swati Tomar, and finally the utilisation of these funds in the acquisition of movable and immovable properties and the advancing of unsecured loans in return for high interest in cash, was arrested on 01.06.2026 by the ED and was remanded to custody for nine days for custodial interrogation by the honourable Special PMLA Court, Panchkula.
Further, a Prosecution Complaint under Sections 44 and 45 of the PMLA, 2002, has been filed against nine accused persons in the investigation under the Prevention of Money Laundering Act, 2002 (PMLA), in the Kotak Mahindra Bank Fraud Case against MC Panchkula. Further investigation is under progress.
