A local court on Wednesday dismissed the regular bail application of former municipal corporation (MC) senior accounts officer Vikas Kaushik, observing that he played a central role in the alleged multi-crore diversion of public funds and that his release at this stage could hamper the ongoing investigation.
Event Context
The court of additional sessions judge rejected Kaushik’s second regular bail plea filed under Section 483 of the Bharatiya Nagarik Suraksha Sanhita (BNSS). The first bail application had been withdrawn on May 1 this year.
The prosecution alleged that Kaushik, while serving as section officer (additional charge) and later senior accounts officer, facilitated the opening and operation of the unauthorised accounts using forged documents and signatures. It further claimed that forged fund transfer letters were used to prematurely encash FDRs and divert around ₹211 crore into the illegal accounts.
“Overall, about ₹338.27 crore was allegedly routed through unauthorised banking channels, of which ₹234.12 crore was restored and nearly ₹10 crore was later deposited back, while about ₹94.39 crore remains unrecovered,” the prosecution alleged.
The court noted that the investigation is still in progress, with the money trail yet to be fully established, supplementary chargesheets likely to be filed, certain beneficiaries and co-accused still absconding, and the forensic examination of disputed signatures by the central forensic science laboratory (CFSL) still awaited.
It also took note of allegations that Kaushik suppressed the existence of unauthorised accounts, procured false confirmations from bank officials and destroyed material evidence.
Team Analysis
During the hearing, the defence argued that Kaushik has an unblemished service record of nearly two decades, no criminal antecedents, no direct recovery had been made from him and the investigation against him was substantially complete. It also questioned the legality of his arrest and the absence of statutory sanction under the Prevention of Corruption Act.
Match Outlook
Rejecting these submissions, the court observed that the absence of previous criminal antecedents or direct recovery could not outweigh the prosecution’s allegations, which were supported by substantial documentary, electronic and banking records. The court held that economic offences involving large-scale diversion of public funds have serious implications for public administration and confidence in government institutions.
Holding that Kaushik had failed to make out a case for regular bail, the court dismissed the petition while clarifying that its observations were limited to the bail proceedings and would not influence the trial on merits.
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The case pertains to alleged financial irregularities in the accounts of the Panchkula MC. According to the prosecution, discrepancies were found between the corporation’s records and those maintained by Kotak Mahindra Bank, Sector 11, involving 16 fixed deposit (FD) receipts.
The investigation allegedly uncovered two unauthorised bank accounts in the name of the MC that were not reflected in official records, leading to allegations of forgery, cheating, criminal breach of trust, corruption and diversion of public funds.
