The Kotak Mahindra Bank fraud case has taken a major turn after the Directorate of Enforcement (ED), Chandigarh Zonal Unit, filed a prosecution complaint against nine accused persons and attached assets worth Rs 131 crore. The agency said the action was taken under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the alleged embezzlement of funds belonging to the Municipal Corporation (MC), Panchkula.
According to the ED press release dated August 5, 2026, the prosecution complaint was filed on July 30, 2026, while the Provisional Attachment Order (PAO) was issued on July 29, 2026. The agency stated that it has successfully attached assets equivalent to 100% of the embezzled funds linked to MC Panchkula.
The investigation began on the basis of a First Information Report (FIR) registered by the Anti-Corruption Bureau (ACB), Panchkula, Haryana, under various sections of the Bharatiya Nyaya Sanhita, 2023, and the Prevention of Corruption Act, 1988. The FIR was filed against unknown officers and officials of Kotak Mahindra Bank after allegations emerged regarding the siphoning of municipal funds through a criminal conspiracy.
ED Probe in Kotak Mahindra Bank Fraud Case
According to the ED, its investigation found that Pushpinder Singh, who was then Deputy Vice President of Kotak Mahindra Bank, allegedly acted in connivance with Vikas Kaushik, an official of MC Panchkula, and Dilip Raghav, an employee of Kotak Mahindra Bank, to open two unauthorised bank accounts in the name of MC Panchkula.
The agency alleged that the accounts were opened using fake documents and authorisation letters that were purportedly issued on behalf of MC Panchkula. These documents were allegedly created despite the internal Standard Operating Procedures (SOPs) of Kotak Mahindra Bank governing account openings.
The ED stated that all genuine communications, instructions and authorisation letters sent by MC Panchkula were ignored. Instead, parallel authorisation letters were allegedly prepared by Pushpinder Singh and Vikas Kaushik, with support from others, to facilitate the opening of the two unauthorised accounts.
Investigators further alleged that funds lying in legitimate MC Panchkula accounts at Kotak Mahindra Bank were transferred to the unauthorised accounts using forged authorisation documents. The ED also said that Satish Kumar of Kotak Mahindra Bank was involved in the alleged siphoning of funds belonging to MC Panchkula.
The agency stated that mobile numbers and email addresses linked to the fake accounts, as well as those connected to genuine MC Panchkula accounts, were updated with contact details allegedly controlled by Vikas Kaushik and Pushpinder Singh. According to the ED, this was done to bypass internal checks and balances designed to prevent unauthorised fund transfers.
The press release said that confirmations required to approve the transactions linked to the forged authorisation letters were sent to mobile numbers and email addresses controlled by Vikas Kaushik. The agency alleged that this enabled the smooth execution of the fraudulent transfers and compromised the bank’s internal control system.
The ED also said that Pushpinder Singh allegedly used the siphoned money to purchase luxury vehicles, including Porsche cars, BMW vehicles and Jeeps. As part of its action in the Kotak Mahindra Bank fraud case, the agency has attached assets worth Rs 131 crore and filed a prosecution complaint against nine accused persons.
According to the ED, the attachment represents 100% of the funds allegedly embezzled from MC Panchkula. The investigation is being carried out under the provisions of the Prevention of Money Laundering Act, 2002, in connection with the alleged financial irregularities involving officials of Kotak Mahindra Bank and MC Panchkula.
