How ₹150 Crore of Public Money Vanished from Kotak Mahindra Bank Panchkula
North Desk Correspondent
Panchkula, March 26
A relationship manager of Kotak Mahindra Bank has been arrested after discrepancies of nearly ₹150 crore were found in Panchkula Municipal Corporation’s fixed deposits. This is the second major bank fraud to hit Haryana in quick succession.
What has happened?
Discrepancies of nearly ₹150 crore have been detected in fixed deposits parked by the Panchkula Municipal Corporation with the Sector 11 branch of Kotak Mahindra Bank. The Haryana State Vigilance and Anti-Corruption Bureau have registered FIR number 0005 dated March 24, 2026 at the ACB police station in Panchkula. The relationship manager at the branch, Dileep Kumar Raghav, has been arrested.
How was the fraud discovered?
Almost by accident. On Tuesday, the Municipal Corporation asked the bank to transfer funds from a matured fixed deposit worth ₹58 crore — only to find the money was not there. When authorities investigated further, discrepancies surfaced in other FDs as well, taking the total suspected loss to nearly ₹150 crore.
How much money was involved altogether?
The Municipal Corporation had parked approximately ₹145 crore in 16 fixed deposit receipts with the Kotak Mahindra Bank branch, with a maturity value of around ₹158 crore. Investigation found that the actual balances in the accounts were significantly lower than expected. Several additional bank accounts also surfaced that were not part of the MC’s official records at all.
How was the money allegedly siphoned?
According to the FIR, the fraud was executed through a calculated series of steps. Bank officials allegedly opened fictitious accounts and diverted FD amounts into them using RTGS transfers. The transfers were reportedly executed using forged signatures and counterfeit official stamps of the municipal authorities. To keep the embezzlement hidden, fabricated paper records and bank statements were allegedly provided to the MC to reassure them that the deposits were intact. The system collapsed when the MC tried to redeem the ₹58 crore FD and found the bank statement was forged and the actual municipal account was empty.
Who has been arrested and what was his role?
Dileep Kumar Raghav, who was the relationship manager at Kotak Mahindra Bank’s Sector 11 Panchkula branch at the time of the alleged offence, has been arrested. Investigators say he conspired with the key accused to send false and misleading reports to the Municipal Corporation regarding the status of its FDs, creating serious discrepancies in the records. The FIR also names unknown officials and employees of the bank.
What does the bank say?
Kotak Mahindra Bank has pushed back firmly. A spokesperson was quoted as saying that all account opening processes, KYC documentation, authorised signatories and instructions received from the MC were in order, and that accounts and transactions were handled in strict adherence to due process and applicable banking norms. The bank says a significant portion of the disputed amount has already been reconciled with the MC and the remaining process is continuing. Significantly, the bank has filed its own formal complaint with Panchkula police and says it is cooperating fully with law enforcement.
What charges have been filed?
The case has been registered under Section 13(1)(a) and 13(2) of the Prevention of Corruption Act, 1988 — which deal with criminal misconduct by public servants — along with multiple sections of the Bharatiya Nyaya Sanhita, 2023.
Has this happened before in Haryana?
Yes — and very recently. This fraud follows close on the heels of a ₹590 crore scam involving IDFC First Bank and AU Small Finance Bank, where employees at a Chandigarh branch siphoned Haryana government funds using fake debit memos from specific state government accounts. That fraud was also detected when departments requested account closures and found the money missing. Multiple accused were arrested by the state vigilance bureau. Following that scam, the Haryana government had de-empanelled both private banks and tightened guidelines for parking public funds with private banks.
So what has Haryana does with its bankers?
The IDFC First Bank fraud had already prompted Haryana to tighten its banking guidelines. How a similar vulnerability persisted in a Panchkula Municipal Corporation account at another private bank — and for what appears to be a long period — is something the investigation will need to address.
What is the ACB saying?
The head of the State Vigilance and Anti-Corruption Bureau has issued a strong public statement saying that no official or employee at any level will be spared for misuse of government funds. The bureau has declared a zero tolerance policy and promised strict legal action against all those found guilty.
What happens next?
Dileep Kumar Raghav is in custody. The investigation is continuing and further arrests are likely given that investigators believe a fraud of this scale could not have occurred without active collusion of multiple internal bank staff and possibly municipal officials. North Desk will report all developments as the case progresses.
