Chargesheet Filed in Rs 150-Crore Kotak Mahindra Bank Scam
The State Vigilance Bureau and Anti-Corruption Bureau (SV&ACB) filed the first chargesheet on Monday in the Rs 150-crore Kotak Mahindra Bank scam, exposing a complex web of forgery involving 87 fake term deposit advices, two illegal accounts, and collusion between bank officials and Panchkula Municipal Corporation (MC) employees. The alleged mastermind, Pushpender Singh, a deputy vice president and branch manager at Kotak Mahindra Bank's Sector 11 branch in Panchkula, Haryana, is accused of siphoning off funds over six years.
Two-Tier Embezzlement Scheme
According to the chargesheet, the accused first embezzled Rs 338.27 crore from the Panchkula MC's account into two illegally opened accounts. In the second tier, funds were transferred from these illegal accounts to accounts controlled by the accused. However, Rs 234.12 crore was returned to the MC's legitimate accounts, leaving the accused in possession of Rs 104.15 crore, as per the investigating agency.
Builder Sunny Garg, who owns Sanat Enterprises and is currently absconding, allegedly pocketed Rs 66.74 crore. Singh is said to have charged interest from Garg for the illicit funds provided.
First Mode of Fraud: Forged FD Advice
The fraud began with the opening of an illegal account at Kotak Mahindra Bank using forged documents. On May 21, 2020, Rs 5 crore was transferred from IDBI Bank to the MC's legitimate account at Kotak Mahindra Bank, with permission obtained to convert it into a fixed deposit citing higher interest rates. Senior Accounts Officer Vikas Kaushik, Pushpender Singh, and relationship manager Dilip Raghav then forwarded a forged FD advice of Rs 5 crore, dated May 28, 2020, to the MC. The same day, the accused withdrew the Rs 5 crore from the valid account and deposited it into the unauthorized account.
On May 29, 2020, they prepared two forged letters bearing the forged signatures of then MC Commissioner Sumedha Kataria (IAS, now retired) and then Senior Accounts Officer Sushil Kumar. These letters were submitted to Kotak Mahindra Bank to transfer Rs 1.40 crore and Rs 1.60 crore to the account of co-accused Rajat Dahra. The remaining Rs 2 crore was withdrawn via two cheques with forged signatures on June 6, 2020.
Second Mode: Premature Liquidation of FDs
Funds were also transferred to the two illegal accounts through premature liquidation of fixed deposits held in the MC's legitimate accounts. The money was then routed to co-accused Rajat Dahra, Swati Tomar, Kapil, Vinod, Sonia, SK Agrotech, and SK Agrofirm via fake vouchers, cheques, or RTGS/NEFT, all bearing forged signatures of then MC Commissioner, Senior Accounts Officers Sushil Kumar and Dharampal, and Deputy MC Commissioners Sayam Garg and Deepak Sura. Notably, Sura left his post on April 19, 2023, but his forged signatures were used for withdrawals until April 23, 2025. Singh facilitated transfers by signing as "OK to process" or using the "Customer Telephonic Confirmation Stamp." The term deposit request letters from the MC for premature liquidation were fake. Through this modus operandi, a fraud of Rs 122.27 crore was committed.
Third Mode: Direct Transfers via Forged Letters
In addition to premature liquidation, the accused transferred funds from valid MC accounts to an illegal account through forged letters. Between March 29, 2023, and March 19, 2024, Rs 211 crore was transferred. Vikas Kaushik signed all letters himself and forged the signature of the then Deputy MC Commissioner on the MC Joint Commissioner's seal. Inquiries with the Panchkula MC revealed that the letters did not match their dispatch or RTGS registers.
Email ID and Phone Number Manipulation
The MC's authorized account was opened on October 27, 2018, with email ID mcpanchkula@gmail.com. The first illegal account was opened on May 28, 2020, using a similar email ID, mcpanchkola@gmail.com (replacing 'u' with 'o'), also in the name of the Executive Officer. This account was closed on April 6, 2022. A second illegal account was opened on June 8, 2022, again with the altered email ID. A fourth account, legitimate, was opened on August 26, 2022, but with the same fake email ID.
The accused updated a mobile number registered to a Rajpura resident, provided by Kapil and Dahra to Singh and Kaushik. On November 11, 2023, they created a second email ID, mcpanchkula.sao@gmail.com, and submitted a fake letter to Kotak Mahindra Bank to update the email ID. The form bore Kaushik's signature and a forged signature of Sura. Consequently, the MC did not receive accurate transaction information, and no net banking or alerts were set up. A landline telephone number common in the MC but not associated with any official was updated on the accounts to show that intimation was given to the MC on that number.
Accused and Ongoing Investigation
The chargesheet has been submitted against nine accused so far. Investigation continues against Sunny Garg, Aryan Singh, Samar Mohan Ranga, Satish Kumar, and other officials of Kotak Mahindra Bank and the MC.
