ED Registers PMLA Case In Rs 150 Crore FD Fraud Linked To Kotak Mahindra Bank: Sources

The Enforcement Directorate (ED) has registered a case under the Prevention of Money Laundering Act (PMLA) in connection with a fixed deposit (FD) fraud linked to Kotak Mahindra Bank, according to sources who spoke to NDTV Profit. The case pertains to alleged discrepancies of around Rs 150 crore in municipal corporation deposits at the bank's Panchkula branch. Investigators are probing whether public funds were diverted and subsequently laundered through the banking system.

The probe is part of a broader investigation into a series of suspected financial irregularities across the Chandigarh–Haryana banking ecosystem. Sources indicate that similar cases involving IDFC First Bank and AU Small Finance Bank are also under scrutiny. Authorities are examining patterns that suggest possible systemic lapses in handling municipal funds, raising concerns over internal controls and oversight mechanisms.

The ED is expected to investigate potential collusion between bank officials and entities responsible for managing municipal deposits. The focus will be on tracing fund flows, identifying beneficiaries, and establishing whether the transactions were structured to conceal illicit activity.

Kotak Mahindra Bank, in a statement, said it is examining the matter following instructions from the Municipal Corporation of Panchkula. The bank added that it is cooperating fully with the municipal body, the government and law enforcement agencies.

With the PMLA case now registered, the ED is likely to step up its investigation, including seeking transaction records, examining bank officials, and identifying the broader network involved.

ALSO READ: Top 15 Stock Picks For April: Kotak Mahindra Bank, Eternal Among Axis Securities Bets With Up To 59% Upside

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.