Chandigarh, June 1: The Directorate of Enforcement (ED), Chandigarh Zonal Unit, has arrested Pushpinder Singh, former Deputy Vice President of Kotak Mahindra Bank, in connection with the alleged ₹145-crore fraud involving the Municipal Corporation (MC), Panchkula.
According to an ED press release issued on Monday, Pushpinder Singh, described as the alleged mastermind behind the scam, was arrested under provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED's investigation stems from an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, which alleged the embezzlement of ₹145 crore belonging to the Municipal Corporation, Panchkula, through a well-organised criminal conspiracy involving bank officials and private individuals.
The probe has revealed an alleged nexus between municipal corporation officials, bank officials and private financiers to siphon off government funds.
Investigators found that Dileep Kumar Raghav, Customer Relationship Manager at Kotak Mahindra Bank, along with Pushpinder Singh, allegedly helped former Senior Accounts Officer of MC Panchkula, Vikas Kaushik, open two unauthorised bank accounts in the name of the municipal corporation using forged authorisation documents.
The ED alleges that funds from genuine MC Panchkula accounts were transferred into these fake accounts through forged fund migration authorisation letters.
The money was then routed to several financiers, including Rajat Dahra, Swati Tomar, Kapil Kumar and Vinod Kumar.
According to the agency, these financiers were operating under the direction and control of Pushpinder Singh.
The investigation further claims that bank accounts used by Rajat Dahra and Swati Tomar for siphoning off a major portion of the municipal funds were also controlled by him.
The ED has also alleged that a substantial part of the diverted money was routed back to Pushpinder Singh and his wife, Preeti Thakur, while some funds were transferred to real estate firms and other private individuals on his instructions.
A Special PMLA Court in Panchkula has remanded Pushpinder Singh to ED custody for nine days. Further investigation in the case is underway.
