The Directorate of Enforcement (ED) conducted searches at 12 premises located in Chandigarh, Panchkula, Zirakpur, Dera Bassi and Rajpura (Patiala) in connection with alleged fixed deposit fraud involving Kotak Mahinda bank and Municipal Corporation Panchkula, it said on Thursday.

The central agency carried out searches under the Prevention of Money Laundering Act (PMLA), 2002 on Wednesday and seized sale purchase agreements and various incriminating documents and evidences related to offence of money laundering.

ED initiated investigation based on FIR registered by ACB, Panchkula, Haryana against unknown officials of the Kotak Mahindra Bank. “The FIR reveals the embezzlement of Municipal Corporation, Panchkula’s funds of Rs 145 crore by deep rooted, well-organised criminal conspiracy by unknown bank officials,” the ED said.

The municipal corporation was given forged FDR documents showing an investment in 16 fixed deposits amounting to Rs 145.03 crore (approx.)  with a maturity value of Rs 158.02 crore (approx.) in Kotak Mahindra Bank, Sector-11, Panchkula, ED said.

It claimed that the investigation revealed a closed criminal nexus of municipal corporation official, bank officials and others hatched a conspiracy for siphoning government funds. “Prima facie investigation revealed that, Dileep Kumar Raghav (Customer Relationship Manager, Kotak Mahindra Bank) along with Pushpinder Singh (Deputy Vice President, Kotak Mahindra Bank) in support of Vikas Kaushik (Ex. Senior Accounts Officer, MC, Panchkula) opened two bank accounts through forged and fake authorisation documents in the name of municipal corporation, Panchkula.

The funds of municipal corporation available in genuine accounts were transferred to unauthorised accounts using forged and fake fund migration authorisation letters in the name of the corporation,” ED said. The searched were conducted on the premises of Pushpinder Singh, Rajat Dahra, Dileep Kumar Raghav, Vikas Kaushik, Sanat Realtors, Sunny Garg and Kapil Kumar, which resulted in seizure of incriminating evidences.

The agency further claimed that unauthorised email IDs were used by bank officials for seeking authorisation for transaction in response to fake and forged authorisation letters. The funds transferred to unauthorised bank accounts were transferred to financers like Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar, it said, adding that these funds were routed back to Pushpinder Singh and Preeti Thakur (wife of Pushpinder Singh). “The funds were also transferred to real estate firms and private persons,” the ED said.