Panchkula Municipal Funds Fraud Under ED Scanner

The Enforcement Directorate on Thursday said it conducted searches at multiple locations in connection with a money laundering case linked to an alleged ₹145 crore fraud involving fixed deposits of the Panchkula Municipal Corporation held in a Kotak Mahindra Bank branch in Haryana.

The raids, carried out on Wednesday, covered around a dozen premises in Chandigarh and Panchkula, besides locations in Zirakpur, Dera Bassi, and Rajpura.

The ED investigation under the Prevention of Money Laundering Act (PMLA) is based on an FIR registered in March by the Haryana Vigilance and Anti-Corruption Bureau.

According to officials, the FIR alleges embezzlement of fixed deposits worth ₹145 crore belonging to the Panchkula Municipal Corporation that were maintained at the Sector-11 branch of Kotak Mahindra Bank in Panchkula.

The probe is currently underway to trace the money trail and identify those involved in the alleged fraud.