The Directorate of Enforcement (ED) has intensified its investigation into the alleged ₹107.24 crore Municipal Corporation (MC) Panchkula fund scam by filing a prosecution complaint against nine accused under the Prevention of Money Laundering Act (PMLA). The agency has also attached assets worth ₹131.13 crore, claiming it has secured the entire amount allegedly embezzled along with the proceeds generated from it.
According to the ED, the fraud involved the creation of two unauthorised bank accounts in the name of MC Panchkula using forged documents and fake authorisation letters. The agency alleges that the accounts were opened through a conspiracy involving a senior bank official, a municipal corporation employee, and another bank staff member, allowing civic funds to be diverted by bypassing banking procedures.
Investigators said the siphoned money was routed through multiple individuals and firms before being transferred into personal accounts and investments to conceal its origin.
The ED further alleged that the main accused used the proceeds to purchase luxury vehicles and acquire high-value properties. Following the exposure of the fraud, some assets were allegedly sold or transferred to family members in an attempt to hide ownership and avoid seizure.
As part of the investigation, the agency has attached bank balances worth ₹12.85 crore and immovable properties valued at ₹118.28 crore, bringing the total value of attached assets to ₹131.13 crore.
The prosecution complaint has been filed against nine accused, while the ED stated that investigations into the money trail and the possible involvement of additional individuals are still underway.
