ED books ex-Kotak bank exec, eight others in MC funds case

The Directorate of Enforcement (ED) has filed a prosecution complaint against nine individuals and attached assets worth ₹131.13 crore in connection with a multi-crore Kotak Mahindra Bank fraud case. The operation, targeting alleged misappropriation of municipal corporation (MC) Panchkula funds, has uncovered a scheme involving unauthorized bank accounts.

ED alleges that Pushpinder Singh, a former deputy vice president at Kotak Mahindra Bank, conspired with MC official Vikas Kaushik and bank employee Dilip Raghav to open two illicit accounts using fraudulent documentation and false authorization letters. Funds were allegedly diverted from the corporation's legitimate accounts into these accounts by circumventing standard bank protocols.

The scheme involved multiple intermediaries, including Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar, Sonia, and firms such as S.K. Agrotech and S.K. Agrofirm. The embezzled money was reportedly laundered through various channels before being deposited into personal accounts and investments. Pushpinder Singh used the proceeds for luxury purchases, including vehicles and properties, while attempts were made to conceal ownership and prevent asset seizure.

The investigation also revealed a significant increase in the income of his wife and the turnover of her legal advisory firm. ED has attached bank balances and immovable properties worth Rs12.85 crore and ₹118.28 crore, respectively, representing the entire alleged embezzlement. Further probe into the money trail and involvement of additional individuals is ongoing.