Kotak Mahindra Bank scam explained: Anatomy of Rs 150-crore fraud via fake accounts, forged papers & FD loot

In a major breakthrough in the Kotak Mahindra Bank-linked fraud involving the Municipal Corporation (MC), Panchkula, the State Vigilance and Anti-Corruption Bureau (SV&ACB) has arrested former Senior Accounts Officer Vikas Kaushik for allegedly orchestrating a multi-crore embezzlement scheme in collusion with a bank official. Here is how the scam unfolded.

Arrest and key Accused

Kaushik, who served as Section Officer and later Senior Accounts Officer at MC Panchkula, was arrested on April 2. He is accused of conspiring with Pushpender Singh, then Deputy Vice President and Branch Manager of the bank’s Sector 11 branch, who is currently absconding.

Modus Operandi: Fake accounts, forgery, FD liquidation

Investigators revealed that the accused opened fraudulent bank accounts in the name of MC Panchkula in May 2020 and June 2022 using forged seals and signatures of senior officials, including then Commissioner Sumedha Kataria, Senior Accounts Officer Sushil Kumar, and then Deputy Municipal Commissioner Deepak Sura.

Using fabricated RTGS/NEFT debit notes, they allegedly diverted funds from legitimate MC accounts. Fixed deposits (FDs) were prematurely liquidated, and the proceeds were transferred into these fake accounts.

Money Trail: From MC accounts to builders

From the fraudulent accounts, funds were routed into personal accounts and further transferred to individuals such as Rajat Dahra and Swati Tomar. The money was then allegedly diverted to builders as loans to generate profits.

Fake statements to cover tracks

The fraud remained undetected for a long period as fake bank statements and forged FD advice notes were generated. When the MC sought account details in July 2025 and February 2026, bank officials allegedly provided false information after consulting Kaushik.

Relationship Manager Dilip Singh Raghav, arrested earlier, is accused of sending fabricated email confirmations to the MC.

Multiple arrests, main accused absconding

Kaushik is the fourth arrest in the case. Earlier, Raghav was arrested on March 25, followed by Rajat Dahra, who allegedly received Rs 70 crore, and Kapil of Rajpura, who is suspected to have received Rs 2.36 crore. Pushpender Singh remains on the run.

Funds recovered, probe continues

On March 30, the bank returned Rs 127 crore to MC Panchkula, covering only the principal amount. As per the FIR, the MC had 16 FDs worth Rs 145.03 crore, with a maturity value of Rs 158.02 crore.

Discrepancies in bank statements triggered suspicion, leading to the exposure of the scam. The investigation is ongoing, particularly into the role of builders who allegedly received diverted funds.