The Enforcement Directorate has conducted searches in connection with a money laundering case linked to the Kotak Mahindra Bank-cum-Municipal Corporation Panchkula fraud case. In a statement, the ED said that searches were carried out at 12 premises in Chandigarh, Panchkula, Zirakpur, Dera Bassi and Rajpura in Patiala district on Wednesday. The agency said the searches resulted in the seizure of sale-purchase agreements and various incriminating documents and evidence related to the offence of money laundering.

 

The ED said the investigation was initiated on the basis of an FIR registered by the Anti-Corruption Bureau, Panchkula under relevant sections of the Bharatiya Nyaya Sanhita, 2023 and the Prevention of Corruption Act, 1988. The agency said that the case involves embezzlement of Municipal Corporation Panchkula funds worth around 145 crore rupees through a well-organised criminal conspiracy involving bank officials. According to the ED, an investigation has revealed a nexus involving municipal officials, bank officials and private persons for siphoning off government funds. The agency said that fake and forged authorisation documents were used to open unauthorised bank accounts in the name of Municipal Corporation Panchkula and funds from genuine accounts were diverted to these accounts.

 

The ED claimed that the diverted funds were routed through various entities and individuals and later transferred to private persons and real estate firms. The agency said forged fixed deposit receipts were also issued to the Municipal Corporation showing investments of over 145 crore rupees. The agency said the searches were conducted at premises linked to the accused persons and resulted in seizure of incriminating evidence.