- Pushpinder Singh, former Kotak Bank VP, arrested in Panchkula Municipal fraud case
- ED detained Singh under Prevention of Money Laundering Act, 2002 provisions
- FIR filed by Panchkula ACB against unidentified Kotak Bank officials for fund irregularities
The Enforcement Directorate (ED) on Monday arrested former Kotak Mahindra Bank Deputy Vice President Pushpinder Singh in connection with the alleged Panchkula Municipal Corporation fund embezzlement case.
Singh, who is alleged to be one of the key masterminds behind the fraud, was taken into custody under Section 19(1) of the Prevention of Money Laundering Act (PMLA), 2002.
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According to the ED, the money laundering investigation stems from an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, Haryana, under various provisions of the Bharatiya Nyaya Sanhita (BNS), 2023, and the Prevention of Corruption Act, 1988.
The FIR was filed against unidentified officials of Kotak Mahindra Bank over allegations of large-scale financial irregularities involving municipal funds.
Investigators suspect that a well-organised conspiracy involving bank officials and others led to the diversion and misappropriation of funds belonging to the Municipal Corporation, Panchkula.
The ED has alleged that forged documents and unauthorised banking transactions were used to siphon off public money, causing significant losses to the civic body.
Pushpinder Singh has been identified by the agency as a central figure in the alleged fraud.
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The arrest marks a major development in the ongoing probe, which has already seen multiple searches and seizures carried out by the ED at several locations linked to the accused.
The agency said further investigation is underway to trace the proceeds of crime, identify additional beneficiaries and uncover the broader network involved in the alleged financial scam.
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