Fake accounts, premature FDs: Kotak Bank official nabbed in ₹150-crore fraud case

Haryana’s State Vigilance and Anti-Corruption Bureau (SVACB) has arrested a senior Kotak Mahindra Bank official in connection with the ₹150-crore financial irregularities involving the Panchkula Municipal Corporation, officials said on Wednesday.

The accused, Pushpender Singh , currently serving as Deputy Vice-President of the bank, surrendered before the vigilance bureau earlier in the day and was subsequently taken into custody. He earlier worked as the branch manager of the bank’s Panchkula branch , later rising through the ranks to become senior manager and eventually deputy vice-president.

Officials said Singh will be produced before a court in Panchkula on Thursday , where investigators will seek his police remand for further questioning as the probe into the alleged fraud continues.

The case came to light after the municipal corporation reported a major discrepancy in its fixed deposit receipts (FDRs) . According to civic authorities, a mismatch of nearly ₹150 crore was found between the corporation’s internal financial records and the balances reflected at the Kotak Mahindra Bank’s Panchkula branch .

Investigators allege that Vikas Kaushik , a former Senior Accounts Officer of the Panchkula Municipal Corporation, conspired with Singh to fraudulently open bank accounts in the name of the civic body in 2020 and again in 2022. These accounts were allegedly used to divert municipal funds.

Using fraudulent debit notes , genuine fixed deposits of the municipal corporation were allegedly prematurely liquidated. The funds were then transferred into the fraudulent accounts and later routed to the accounts of other accused persons involved in the scam.

So far, the vigilance bureau has arrested five individuals in the case , including Dileep Kumar Raghav , who served as the bank’s relationship manager during the period of the alleged fraud , and Rajat Dahra. Preliminary investigations revealed that Raghav had allegedly sent false reports to the municipal corporation regarding the status of the fixed deposits.

An FIR has been registered at the Anti-Corruption Bureau Police Station in Panchkula under charges of cheating, criminal conspiracy and other offences, and investigators say further arrests are possible as the probe progresses.