Panchkula, April 3 -- Mirroring developments in Chandigarh, 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 another fake bank account in the name of Panchkula MC, again with fake seals and signatures of deputy municipal commissioner Deepak Sura. The accused then prepared fake debit notes (RTGS/NEFT). Vikas would sign as one of the authorised signatories, while the second signature was forged. Using these fake debit notes, Puspendra transferred funds from the fake bank accounts to his own and other accounts, according to investigators. Further, the accused, in collusion with the bank manager, prematurely encashed fixed deposits (FDs) of MC through fraudulent debit notes. These funds were also transferred into the fake accounts using forged signatures and subsequently routed to accounts of agents, relatives and builders. In July 2025 and February 2026, when MC sought details regarding FDs and account balances, both accused worked to cover up the fraud. As all FDs had already been prematurely withdrawn and the funds diverted, no amount remained in the accounts. Vikas thus advised providing false information. Accordingly, Puspendra prepared and submitted fake bank statements and forged FD advice documents to MC. A case was registered on March 24 under various sections of BNS and Prevention of Corruption Act in this regard. A spokesperson of the investigation agency said Vikas will be produced in a local court on Friday for remand. Apart from Vikas, police have already arrested the bank's relationship manager, Dilip Kumar Raghav, and Rajat Dahra and Kapil (both private persons)....