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

The ED has filed a prosecution complaint against nine individuals, including a former Kotak Mahindra Bank executive, in connection with the alleged embezzlement of municipal corporation (MC) Panchkula funds. The investigation, which is part of the broader Kotak Mahindra Bank fraud case, has led to the attachment of assets worth ₹131.13 crore, believed to represent the entire amount allegedly siphoned off.

The accused are accused of opening unauthorized bank accounts in the name of MC Panchkula using forged documents and fake authorisation letters, diverting funds from the corporation's genuine accounts. The siphoned money was then allegedly laundered through several intermediaries before being routed into personal accounts and investments.

ED claims that the proceeds of crime were used to acquire luxury assets, including several high-end vehicles. The investigation also uncovered a rise in income for the wife of one of the accused and the turnover of her company during the period of the alleged offence.

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