CHANDIGARH, March 17 — The Chandigarh Municipal Corporation has requested a comprehensive audit by the Comptroller and Auditor General of India into the financial dealings of Chandigarh Smart City Limited. The recommendation follows an internal inquiry into a Rs 116-crore scam involving fraudulent Fixed Deposit Receipts at the Sector 32 branch of IDFC First Bank.
The internal investigation revealed that the misappropriation occurred shortly before the closure of the Smart City company in March 2025. According to the report, a dedicated account was established to manage operational and maintenance funds, into which Rs 116 crore was transferred. Between late March and early April 2025, eleven fake FDRs were prepared and held by an outsourced accountant.
The discrepancy surfaced when municipal officials attempted to encash the certificates, only to be informed by the bank that the documents were not in their system. Bank representatives stated that over Rs 8 crore from the account had already been diverted to three private firms. In response, the Municipal Corporation has terminated the services of the accountant involved and suspended two additional employees from the accounts department.
“The matter is now under police investigation, and we have submitted our internal findings for further action,” a senior official maintained. He noted that the CSCL has spent over Rs 900 crore on various urban projects, many of which are now subject to scrutiny.
Concurrently, members of the Administrator’s Advisory Council have urged the Chandigarh Administration to make the entire financial record of the Smart City Mission public. Ajay Jagga, a member of the council, affirmed that the lack of updated financial statements since March 2023 is concerning. He asserted that transparency is essential to address citizens’ needs and maintain the integrity of the city’s urban development ecosystem.
