Pushpinder Singh, a former Kotak Mahindra Bank executive, has been arrested by the Enforcement Directorate for allegedly masterminding a Rs 145-crore fraud involving Panchkula municipal funds.
Key Points
- Former Kotak Mahindra Bank executive Pushpinder Singh arrested by ED in Rs 145 crore fraud case.
- The fraud involved Panchkula municipal corporation officials, bank employees, and private individuals in a criminal conspiracy.
- Forged documents were used to open unauthorised bank accounts and transfer funds from the Municipal Corporation, Panchkula.
- Funds were routed to financiers controlled by Pushpinder Singh, who then transferred the money back to Singh and his wife.
- The ED's investigation revealed a criminal nexus between municipal corporation officials, bank officials, and private individuals.
The Enforcement Directorate (ED) on Monday said it has arrested a former Kotak Mahindra Bank executive alleged to be the mastermind of a Rs 145-crore fraud in which Panchkula municipal corporation officials, bank employees and private persons allegedly conspired to siphon off government funds.
Details of the Arrest and Investigation
Pushpinder Singh, a former deputy vice president of the private sector lender, was arrested by the Chandigarh Zonal Unit of the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) on June 1, the agency said in a statement.
A special PMLA court in Panchkula has sent Singh to ED custody till June 9, the statement said.
The money laundering case stems from an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, under various provisions of the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act against unidentified bank officials.
The Alleged Conspiracy
According to the ED, the FIR alleged embezzlement of the funds of the Municipal Corporation, Panchkula, worth Rs 145 crore through a "deep-rooted, well-organised criminal conspiracy" involving bank officials.
The federal agency said its investigation has so far revealed a "closed criminal nexus of municipal corporation officials, bank officials and private persons" that allegedly hatched a conspiracy to siphon off government funds.
Modus Operandi
The ED alleged that Dileep Kumar Raghav, a former customer relationship manager at Kotak Mahindra Bank, along with Singh and Vikas Kaushik, former senior accounts officer of MC Panchkula, opened two bank accounts in the name of the civic body using forged and fake authorisation documents.
"The funds of MC, Panchkula available in genuine accounts were transferred to unauthorised and illegal accounts using forged and fake fund migration authorisation letters in the name of MC, Panchkula," the agency said.
Routing of Funds
The investigation found that funds transferred to the unauthorised accounts were subsequently routed to financiers, including Rajat Dahra, Swati Tomar, Kapil Kumar and Vinod Kumar, the ED alleged.
"Investigation has revealed that these financiers were working under the control and directions of Pushpinder Singh," the agency said.
The ED further alleged that bank accounts belonging to Dahra and Tomar, which were used for siphoning off a major portion of the municipal corporation funds, were also controlled by Singh.
According to the agency, the money received by these financiers from the fake MC Panchkula accounts was routed back to Singh and his wife, Preeti Thakur.
The funds were also allegedly transferred to real estate firms and other private persons on Singh's directions, the ED said.
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