ED Attaches ₹131 Crore Assets In Kotak Bank Fraud Case, Complaint Filed Against Nine Accused

Mumbai: The Enforcement Directorate (ED) has attached assets worth Rs 131.13 crore in a money-laundering investigation involving funds allegedly diverted from the Municipal Corporation of Panchkula.

The agency has also filed a prosecution complaint against nine accused before the competent court.

The attached assets include bank balances of Rs 12.85 crore and immovable properties valued at Rs 118.28 crore. According to the ED, assets equal to 100% of the allegedly embezzled municipal funds were attached within four months of the registration of the FIR.

Case Background

The Anti-Corruption Bureau in Panchkula registered the FIR under provisions of the Bharatiya Nyaya Sanhita, 2023, and the Prevention of Corruption Act, 1988.

The ED subsequently began its investigation under the Prevention of Money Laundering Act.

Unauthorised Accounts

According to the agency, Pushpinder Singh, then deputy vice-president at Kotak Mahindra Bank, allegedly conspired with municipal corporation official Vikas Kaushik and bank employee Dilip Raghav.

They allegedly opened two unauthorised bank accounts in the name of the Municipal Corporation of Panchkula using forged documents and approvals.

Funds from the civic body’s genuine Kotak Mahindra Bank accounts were then allegedly transferred into these accounts through fake authorisation letters.

Money Layering

The diverted money was allegedly transferred to several individuals and entities to conceal its source and ownership.

A portion was reportedly routed to the personal accounts of Singh and Kaushik, as well as accounts held by their wives. The ED also alleged that bank official Satish Kumar was involved in siphoning off the municipal funds.

Luxury Purchases

The agency claimed Singh used part of the money to buy luxury vehicles, watches, furniture and immovable properties.

The vehicles allegedly included a Porsche Cayenne, several BMW models, two Jeep Wranglers, a Land Cruiser and a Harley-Davidson motorcycle.

Assets Allegedly Sold

After the fraud was detected, Singh allegedly sold the vehicles to third parties.

The ED also accused him of transferring properties in Panchkula’s Sector 2 to his sister, Gunita Sethi, to hide their ownership and prevent attachment under the money-laundering law.