Chandigarh: A Panchkula court on Friday remanded Rajat Dahra, a key accused in the alleged ₹150-crore Municipal Corporation (MC) Panchkula bank fraud, to six days of police custody for further interrogation, officials said.

The State Vigilance and Anti-Corruption Bureau, Haryana, told the court that Dahra was among the major beneficiaries in the alleged siphoning of government funds and that his custodial interrogation is crucial to uncover the wider conspiracy, identify other beneficiaries, and trace the flow of money.

Probe Points to Large-Scale Diversion of Funds

According to investigators, Dahra allegedly received and transferred over ₹60–70 crore through multiple bank accounts over several years. The agency is also probing two undisclosed accounts linked to the MC that were not part of official records and may have been used to divert funds.

Officials said the accused could help establish the modus operandi of the fraud and identify those involved in opening and operating the suspicious accounts.

Background: Fraud in Fixed Deposits

The case relates to major discrepancies in 16 fixed deposits worth over ₹145 crore maintained by MC Panchkula at Kotak Mahindra Bank’s Sector-11 branch.

• The deposits had a maturity value of around ₹158 crore
• Discrepancies emerged when bank records did not match MC accounts
• In one case, the balance showed ₹2.18 crore against an expected ₹50.07 crore
• The bank later reported total balances of only ₹12.86 crore, raising red flags

Bank Official Arrested Earlier

Earlier, the vigilance bureau had arrested Dileep Kumar Raghav, a Relationship Manager at the bank, who is alleged to have conspired with other accused and provided misleading information regarding the fixed deposits.

The FIR (No. 0005 dated March 24, 2026) has been registered under the provisions of the Prevention of Corruption Act, 1988 and the Bharatiya Nyaya Sanhita.

Investigation Expands

Investigators said the probe is now focused on:

• Tracing diverted funds across multiple accounts
• Identifying other officials and private individuals involved
• Examining discrepancies between bank and municipal records

Authorities have reiterated a zero-tolerance policy against corruption, stating that all those involved, regardless of rank, will face strict legal action.