In a significant development regarding a ₹150 crore banking fraud case, Pushpender Singh, the Deputy Vice-President of Kotak Mahindra Bank, turned himself in to the Haryana State Vigilance Bureau and the Anti-Corruption Bureau on Wednesday, according to an official report.
The authorities plan to question Singh as part of their ongoing investigation before deciding on subsequent actions in the matter.
Pushpender Singh was implicated in the case last week following the filing of a First Information Report (FIR) on March 24, which named unidentified bank officials after the Panchkula Municipal Corporation identified inconsistencies in its fixed deposit documentation.
Currently, five individuals have been arrested, including Dalip Kumar Raghav, a relationship manager. Investigators allege that Raghav provided misleading information regarding the fixed deposits to the Municipal Corporation of Panchkula, leading to significant inaccuracies in the financial records.
The Haryana government directed the vigilance bureau to investigate after discrepancies were reported in fixed deposits and associated accounts at the bank’s Sector 11 branch in Panchkula. It is reported that Pushpender Singh previously held a managerial position at this branch.
On March 30, the vigilance bureau informed a Panchkula court that Singh’s name had emerged during the initial investigation. Raghav, during the inquiry, indicated that he was aware of Singh’s residence and offered to assist in his arrest.
Kotak Mahindra Bank has already reimbursed ₹127 crore to the municipal corporation. A spokesperson for the bank stated, “As the reconciliation of fixed deposits and associated accounts for the Municipal Corporation of Panchkula continues, we have identified certain discrepancies that may impact both the bank and the corporation, which are currently under investigation. Given our longstanding relationship with governmental entities, Kotak Mahindra Bank has provisioned ₹127 crore for the Municipal Corporation while the inquiry is ongoing.”
The spokesperson further emphasized, “Kotak Mahindra Bank and the Municipal Corporation are collaborating with the relevant authorities to clarify the situation and resolve the issue appropriately. Our operations remain unaffected, and customer services continue as normal.”
This case has emerged shortly after the ₹590 crore fraud involving IDFC First Bank, which has prompted the Haryana government to recommend a Central Bureau of Investigation (CBI) probe, highlighting the growing concerns over financial misconduct in the state.
