Panchkula, April 3 -- The state vigilance and anti-corruption bureau (SV&ACB) has arrested a Panchkula municipal corporation official in the multi-crore Kotak Mahindra Bank FDR fraud - the first government functionary to be nabbed in the case.

As per the investigation agency, while posted as a section officer in MC, accused Vikas Kaushik, in connivance with Puspendra, manager at Kotak Mahindra Bank, Sector 11, Panchkula, opened a fake bank account in May 2020 in the name of the corporation.

In the account opening form, Vikas affixed the seals of the then MC commissioner, VM Sumedha Kataria, and the then senior accounts officer, Sushil Kumar, while Puspendra forged their signatures.

Subsequently, in June 2022, both accused opened ...