ED registers ECIR against Kotak Mahindra Bank in Rs 150 crore fraud
Multiple matters emerged where government fixed deposits were given as loans to private parties at high interest rates.
- Apr 7, 2026,
- Updated Apr 7, 2026 4:15 PM IST
The Enforcement Directorate (ED) has registered an Enforcement Case Information Report (ECIR) against Kotak Mahindra Bank in connection with the Rs 150 crore fraud linked with the Municipal Corporation of Panchkula. An ECIR is used by the ED to initiate a money-laundering investigation under the PMLA.
The ED received information that a racket of giving loans to private parties from government fixed deposits was going on at the bank for a long time. Multiple matters emerged where government fixed deposits were given as loans to private parties at high interest rates.
Some of these loans were repaid, sources said, but many weren’t repaid, which led to the racket being exposed.
Haryana Police, last month, arrested Dileep Kumar Raghav, a former Relationship Manager at Kotak Mahindra Bank, in connection with the alleged fixed deposit fraud. Raghav is accused of sending falsified reports to the civic body regarding fixed deposits, allegedly in conspiracy with other key individuals. The reports misrepresented the status and existence of certain fixed deposits, which formed a crucial part of the alleged fraud leading to discrepancies in municipal funds.
Kotak Mahindra Bank stated it is reconciling fixed deposits and accounts linked to the Municipal Corporation of Panchkula after reports emerged that deposits worth Rs 150 crore were missing from these accounts. The bank said the reconciliation was initiated following instructions from the Municipal Corporation and that a significant portion of the amounts under review had already been reconciled.
The funds were allegedly shown as invested in fixed deposits with the bank, but discrepancies surfaced during reconciliation.
The Enforcement Directorate (ED) has registered an Enforcement Case Information Report (ECIR) against Kotak Mahindra Bank in connection with the Rs 150 crore fraud linked with the Municipal Corporation of Panchkula. An ECIR is used by the ED to initiate a money-laundering investigation under the PMLA.
The ED received information that a racket of giving loans to private parties from government fixed deposits was going on at the bank for a long time. Multiple matters emerged where government fixed deposits were given as loans to private parties at high interest rates.
Some of these loans were repaid, sources said, but many weren’t repaid, which led to the racket being exposed.
Haryana Police, last month, arrested Dileep Kumar Raghav, a former Relationship Manager at Kotak Mahindra Bank, in connection with the alleged fixed deposit fraud. Raghav is accused of sending falsified reports to the civic body regarding fixed deposits, allegedly in conspiracy with other key individuals. The reports misrepresented the status and existence of certain fixed deposits, which formed a crucial part of the alleged fraud leading to discrepancies in municipal funds.
Kotak Mahindra Bank stated it is reconciling fixed deposits and accounts linked to the Municipal Corporation of Panchkula after reports emerged that deposits worth Rs 150 crore were missing from these accounts. The bank said the reconciliation was initiated following instructions from the Municipal Corporation and that a significant portion of the amounts under review had already been reconciled.
The funds were allegedly shown as invested in fixed deposits with the bank, but discrepancies surfaced during reconciliation.