Kotak Mahindra Bank is facing fresh regulatory scrutiny after India’s Enforcement Directorate (ED) accused a former deputy vice president of laundering ₹100 crore from municipal accounts.
The agency alleges that Pushpinder Singh, the ex-executive, diverted funds from the Panchkula municipal corporation in Haryana to finance a lavish lifestyle, including the purchase of high-end vehicles such as a Porsche and a Harley-Davidson motorcycle.
The allegations highlight ongoing compliance risks for major Indian financial institutions as regulators intensify their focus on money laundering and fund diversion.
While the ED has not yet detailed the specific mechanisms used to siphon the civic funds, the case underscores the challenges banks face in monitoring employee conduct and preventing the misuse of corporate or municipal accounts for personal gain.
This development comes amid a broader wave of enforcement actions by Indian authorities.
The ED has recently escalated its investigations into political funding and money laundering, including a separate probe involving alleged fund transfers worth ₹150 crore linked to the Trinamool Congress (TMC) and the freezing of ₹440 crore in bank accounts belonging to the party.