The Enforcement Directorate (ED) says Pushpinder Singh (the alleged mastermind behind the money laundering racket of the alleged fraud of Kotak Mahindra Bank and Panchkula Municipal Corporation) used suspected proceeds of crime to buy luxury vehicles and other high-value assets.
The agency alleges that the vehicles are luxury BMW cars, a Porsche Cayenne, Jeep Wrangler SUVs, a Toyota Land Cruiser and a Harley-Davidson motorcycle. The allegations are a matter of money laundering and have not been proven by a court.
According to the ED's Chandigarh Zonal Office, the agency filed a prosecution complaint on July 30 under the Prevention of Money Laundering Act (PMLA), 2002, against nine suspects. On July 29, the agency issued a Provisional Attachment Order for movable and immovable assets worth ₹131.13 crore. The attached assets include bank balances of ₹12.85 crore and immovable properties of ₹118.28 crore.
The investigation was triggered by an FIR registered by the Anti-Corruption Bureau (ACB), Panchkula, under the Bharatiya Nyaya Sanhita and Prevention of Corruption Act. The FIR alleged criminal conspiracy of Kotak Mahindra Bank and officials of Panchkula Municipal Corporation. Funds belonging to the municipal corporation were allegedly diverted through unauthorised bank accounts created using forged documentation.
The ED has alleged that Pushpinder Singh was a Deputy Vice President of the bank at the time of the alleged conspiracy. According to the agency, he collaborated with Panchkula Municipal Corporation official Vikas Kaushik and bank employee Dilip Raghav to establish two unauthorised accounts in the corporation's name. The investigators have alleged that forged documents and false authorisation letters were used to open and run such accounts.
The agency has also claimed that legitimate communication and authorisation documents issued by the municipal corporation were ignored and other documents were created to back up the unauthorised accounts. The ED alleges that large amounts were transferred from genuine municipal corporation accounts into the illegal accounts.
Another bank employee, Satish Kumar, is also alleged to be involved in the transfer of money. Information of contact details which included telephone numbers and email addresses associated with the genuine and unauthorised municipal corporation accounts were changed to those of the accused, the ED said.
The ED has also alleged that money transferred through the unauthorised accounts was then distributed to various individuals and firms. The names of such entities listed by the ED are Rajat Dahra, Swati Tomar, Kapil Kumar, Vinod Kumar and Sonia, as well as S.K. Agrotech and S.K. Agrofirm. The agency says these transactions were in fact a form of laundering to cover up the origin and movement of the alleged proceeds of crime.
As the ED says, funds were transferred into the accounts of Pushpinder Singh, his wife Preeti Thakur and other entities. The agency alleges that these funds were then used to purchase luxury vehicles, expensive watches, furniture and other movable and immovable properties.
Vehicles that the agency cites are a Porsche Cayenne, BMW 740Li, BMW X7, BMW 749i, BMW Z4, two Jeep Wrangler SUVs from 2021 and 2024, a Toyota Land Cruiser and a Harley-Davidson motorcycle.
The ED has also claimed that some of these vehicles were sold or transferred to third parties after the fraud came to light. Investigators will examine the transactions to see if the transfers were made in order to hide or move assets that were derived from the alleged proceeds of crime.
The money laundering investigation also pertains to alleged financial transactions beyond buying luxury assets. The ED claims that proceeds were used to provide unsecured loans to individuals and business entities. Interest was charged at around three per cent per month, or 36 per cent annually, and some payments were in cash, the agency said.
The agency also investigated the financial activities of Preeti Thakur and her company Chaudhary & Sethi Legal Advisory Pvt. Ltd. The company’s income, turnover and profitability rose considerably from 2022-23 and 2023-24 onwards, the ED claims. The financial growth is now being examined if there was the money that was derived from the fraudulent transactions.
As part of the investigation, the ED conducted searches on April 22 under Section 17 of the PMLA. The agency reportedly seized documents and digital evidence during these searches. This information is expected to be the basis for investigating the financial trail and how money gets moved from bank accounts, individuals, companies and assets.
The agency also claimed that a property located in Sector-2, Panchkula, was transferred to Pushpinder Singh’s sister through what it called a “round-tripping” arrangement. The ED contended that the transaction was done to hide the ownership of the property and protect it from possible attachment proceedings.
A key figure in the investigation, Pushpinder Singh, was arrested by the ED on June 1, 2026. The agency is still investigating the alleged financial network and is investigating the roles of the other accused persons and beneficiaries named in the case.
The ED claimed that about ₹107.24 crore from Panchkula Municipal Corporation was retained and routed through the allegedly unauthorised accounts and beneficiary entities. The full financial trail is a major objective of the ongoing investigation.
The attachment of assets worth ₹131.13 crore is a significant development in the case. In the PMLA framework, provisional attachment proceedings are intended to prevent suspected proceeds of crime from being transferred, concealed or otherwise handled during the investigation. Such attachment proceedings are subject to the statutory process and adjudication under the law.
The accusations against the accused will remain allegations unless and until proven by judicial proceedings. The filing of a prosecution complaint and attachment of assets is not proof that the accused have been guilty. The accused will be entitled to challenge the allegations at the appropriate legal level and courts.
The case has been publicized because it is about public funds, banking and a complex system of financial transactions. The possible use of forged documents to make accounts in the name of a municipal corporation also raises questions about internal controls and verification mechanisms in financial institutions.
The investigation will continue as the ED evaluates seized digital evidence, financial records, property transactions, and vehicle ownership documents. Investigators may also seek to determine whether others were involved and if other assets were purchased by the suspects using the suspected proceeds.
The funds of Panchkula Municipal Corporation are believed to be involved in the case so it is all the more important the investigation. Public money is meant for civic services and municipal development and any diversion can have long-term implications for local administration and public trust.
For now, ED claims in relation to the luxury vehicles, properties, loans and alleged layering of funds remain part of the ongoing legal process. The final determination of liability will be based on evidence before the competent judicial and statutory authorities. Further information about the financial trail, the accused persons and assets under investigation will be revealed as the investigation progresses.
The case indicates the need for robust banking verification systems and effective monitoring of large financial transactions. It also demonstrates the extent to which money laundering investigations can be extended to assets, financial transfers and transactions that conceal the origin of the alleged proceeds of crime.
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