Key Points
The Enforcement Directorate conducted raids across 12 locations in Haryana and Punjab in connection with a ₹145 crore fraud involving Panchkula Municipal Corporation funds.
The probe has identified a nexus between bank officials, municipal staff and private individuals who allegedly siphoned funds using forged documents and fake authorisations.
Investigators say unauthorised email IDs and fictitious accounts were used to divert funds, which were parked in fixed deposits, routed through multiple entities and returned to key accused.
The Enforcement Directorate (ED) on 22 April 2026 conducted searches at multiple locations across Chandigarh, Panchkula, Zirakpur, Dera Bassi and Rajpura as part of an ongoing money laundering investigation into an alleged ₹145 crore fraud involving the Panchkula Municipal Corporation.
The searches, carried out under the Prevention of Money Laundering Act (PMLA), covered 12 premises linked to bank officials, municipal staff and private individuals. Officials said incriminating documents, including sale and purchase agreements and records indicating money laundering, were seized during the operation.
The case stems from an FIR registered on 24 March 2026 by the Haryana State Vigilance and Anti Corruption Bureau, which alleged large scale embezzlement of municipal funds held as fixed deposits in a branch of Kotak Mahindra Bank in Panchkula. According to investigators, these deposits were liquidated using forged documents and diverted into unauthorised accounts.
The ED has identified Dileep Kumar Raghav, a customer relationship manager, and Pushpinder Singh, a deputy vice president at the bank, along with Vikas Kaushik, a former senior accounts officer of the municipal corporation, as key accused in the case. Pushpinder Singh, described as the alleged mastermind, has been in custody of the ACB since 9 April 2026.
According to the agency, the investigation so far has revealed a “closed criminal nexus” involving municipal officials, bank personnel and private individuals. The group is alleged to have conspired to siphon government funds through a structured mechanism involving forged authorisations and manipulated banking processes.
Investigators said funds from legitimate municipal accounts were transferred into unauthorised accounts created in the name of the Panchkula Municipal Corporation. This was done using fake fund migration authorisation letters. In several instances, forged documents were used to open accounts and facilitate transfers without detection.
A key aspect of the alleged fraud involved the use of unauthorised email IDs by bank officials to obtain approvals for transactions. These email IDs were used to respond to forged authorization letters, giving the appearance of legitimate approvals. Officials noted that the authorised email IDs on record differed from those used in these transactions, as confirmed by statements recorded under the PMLA.
Further, the ED said the municipal corporation was provided with forged fixed deposit receipts showing investments in 16 fixed deposits amounting to approximately ₹145.03 crore, with a projected maturity value of ₹158.02 crore. Investigators allege that the municipal records did not reflect the actual movement of funds from genuine accounts.
The diverted funds were subsequently routed through multiple accounts and transferred to various individuals and entities, including financiers and real estate firms. Among those named as recipients are Rajat Dahra, Swati Tomar, Kapil Kumar and Vinod Kumar.
According to the agency, a portion of these funds was eventually routed back to Pushpinder Singh and his wife, Preeti Thakur. Officials said the layering of transactions across different accounts and entities was aimed at concealing the origin of the funds. Searches were also conducted at premises linked to several individuals and entities, including those associated with the accused and real estate firms.
The agency’s probe is focused on tracing the flow of funds, identifying beneficiaries and establishing the full extent of the alleged conspiracy. Officials said the investigation is ongoing and further action, including attachment of assets, may follow based on findings.
The case has drawn attention due to the scale of the alleged fraud and the involvement of both public officials and banking personnel. Authorities are examining the role of each accused and the systemic lapses that enabled the diversion of public funds. Further developments in the investigation are expected as the ED continues to analyse seized documents and financial records.
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