Panchkula Municipal Corporation Fraud: Ex-Kotak VP and Businessman Under Investigation
Panchkula MC FDRs fraud: Ex-Kotak V-P, bizman under I-T scanner for dubious transactions
Hindustan Times
Image: Hindustan Times
Pushpender Singh, a former deputy vice-president of Kotak Mahindra Bank, is under investigation by the Income Tax Department for facilitating suspicious loans totaling ₹70 crore (approximately $8.4 million USD) to businessman Sunny Garg. This scrutiny follows a larger fraud involving ₹150-160 crore (approximately $18-20 million USD) linked to the Panchkula Municipal Corporation's misappropriated funds.
- 01Pushpender Singh is accused of being the mastermind behind a major fraud involving the Panchkula Municipal Corporation.
- 02The Income Tax Department is investigating loans worth ₹70 crore facilitated by Singh to businessman Sunny Garg.
- 03Garg claims he received threats from Singh related to the fraudulent activities.
- 04Kotak Mahindra Bank has been de-empanelled from conducting government business following the fraud revelation.
- 05The investigation has already led to the arrest of two intermediaries involved in the loan transactions.
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Pushpender Singh, the suspended deputy vice-president of Kotak Mahindra Bank, is under investigation by the Income Tax Department for his role in a significant fraud involving the Panchkula Municipal Corporation in Haryana, India. Singh allegedly facilitated loans worth ₹70 crore (approximately $8.4 million USD) to businessman Sunny Garg under dubious circumstances. The Haryana State Vigilance & Anti-Corruption Bureau is investigating a larger fraud involving ₹150-160 crore (approximately $18-20 million USD) linked to the liquidation of municipal fixed deposits through forged documents. Garg, who is related to a former mayor, recorded a statement detailing his interactions with Singh and the intermediaries involved in the loan transactions, which carried an interest rate of 1.25% to 1.5% per month. Following the fraud's exposure, Kotak Mahindra Bank has been barred from handling government funds. The investigation has already led to the arrest of two individuals connected to the loan facilitation.
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The fraud has led to significant scrutiny of local government financial practices and the banking institution involved, impacting public trust in financial management.
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