Nearly ₹150–160 crore belonging to the Panchkula Municipal Corporation has allegedly been siphoned off through fake Fixed Deposit Receipts (FDRs) linked to Kotak Mahindra Bank, triggering a major financial probe in Haryana.
The discrepancy surfaced when the civic body attempted to withdraw the maturity proceeds of a fixed deposit worth about ₹58-59.5 crore but found the funds had not reached its account despite bank records suggesting otherwise. Investigators suspect the deposits were diverted into fraudulent accounts using forged documents and fabricated statements.
Haryana authorities have registered an FIR and launched a vigilance investigation, while Chief Minister Nayab Singh Saini has ordered a detailed probe. Meanwhile, the bank says it is reconciling accounts and cooperating with law-enforcement agencies, as arrests have already been made in connection with the alleged fraud.
Missing FDs Raise Questions Over ₹160-Crore Diversion
The alleged scam came to light when the Panchkula civic body sought the maturity proceeds of one of its fixed deposits held with the bank. Officials expected the maturity amount around ₹58–59.5 crore to be transferred into the municipal account, but the funds never arrived even though bank statements appeared to show the transaction had been completed. A deeper verification revealed that the statement itself was allegedly counterfeit and that several FDRs presented to the municipal body did not match the bank’s official records.
Further scrutiny uncovered discrepancies across multiple fixed deposits linked to the civic body, pushing the suspected fraud to nearly ₹145–160 crore in total value. Investigators believe forged documentation and fabricated financial reports may have been used over an extended period to conceal the irregularities.
The Haryana State Vigilance and Anti-Corruption Bureau (ACB) subsequently registered an FIR against certain bank officials and unidentified individuals under provisions of the Prevention of Corruption Act and relevant criminal laws. Authorities suspect that the funds may have been diverted into multiple external accounts while the municipal corporation continued to receive paper records suggesting its deposits were intact.
Municipal Commissioner Vinay Kumar confirmed that the discrepancies were discovered only when the corporation attempted to encash the matured deposit. “Some of the FDRs had been with the Panchkula branch for a long time. The discrepancy was found when the bank was asked to transfer funds upon maturity,” he said, adding that further verification revealed similar issues with other deposits.
Arrests Made As Investigators Trace Money Trail
The investigation has already led to arrests and intensified scrutiny of transactions linked to the case. Police first arrested Dilip Kumar Raghav, a former relationship manager at the bank, who is accused of sending falsified reports regarding the status of the municipal corporation’s deposits and allegedly withholding crucial information about the transactions.
Authorities later arrested another accused, Rajat Dahra, who reportedly received more than ₹60 crore in two bank accounts between 2020 and 2025 before transferring the money to several other accounts now under investigation.
Officials believe these transfers may be part of a wider network used to move the diverted funds and obscure their trail. Investigators have seized bank documents, examined allegedly forged seals and signatures, and are analysing account statements to identify additional suspects or beneficiaries.
Kotak Mahindra Bank has stated that it has initiated a detailed reconciliation exercise of the fixed deposits and related accounts maintained by the Panchkula Municipal Corporation. According to the bank, preliminary checks suggest that account-opening procedures, KYC documentation, authorised signatories and instructions appeared to follow due process, although the reconciliation process is still ongoing. The bank has also filed its own complaint with local police and said it is fully cooperating with government authorities and investigators to ensure the matter is examined independently.
After ₹590-Crore Haryana Bank Scam
The latest allegations come barely a month after a separate financial irregularity involving government-linked accounts surfaced at IDFC First Bank in Chandigarh. In that case, investigators uncovered a suspected ₹590-crore fraud involving unauthorised transactions allegedly carried out by certain bank employees in possible collusion with external parties.
That incident prompted the Haryana government to review its banking arrangements and tighten oversight of public funds placed with private lenders. Authorities had also directed government departments and state-run bodies to reassess their accounts and verify deposits held with banks. The discovery of the alleged Panchkula FD discrepancies shortly afterward has therefore raised fresh concerns about financial controls, monitoring mechanisms, and the security of public funds managed through banking channels.
Experts say such scams often rely on forged physical documents, manipulated statements, and internal access to banking systems, allowing irregularities to remain undetected for long periods until a deposit matures or accounts are audited. In the Panchkula case, investigators are now examining whether the alleged fraud was carried out by a small group of individuals or if it involved a broader conspiracy spanning multiple institutions.
The Logical Indian’s Perspective
Financial irregularities involving public funds are not merely accounting lapses they directly affect citizens whose taxes support public infrastructure, services and development. When civic bodies and banks fail to detect discrepancies over long periods, it highlights gaps in transparency, oversight and internal auditing mechanisms.
Strengthening safeguards such as digital verification of deposits, real-time reconciliation of government accounts and stronger whistleblower protections could help prevent similar cases in the future.
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