Chandigarh, March 11: The Chandigarh Police have initiated a comprehensive investigation into an alleged financial scam involving over Rs 116 crore within the Municipal Corporation (MC). The probe focuses on discrepancies found in fixed deposit receipts (FDRs) that were reportedly issued during the transition of assets from the now-defunct Chandigarh Smart City Limited (CSCL) to the civic body.
Economic Offences Wing (EOW) officials are currently scrutinizing the roles of several individuals, including bank personnel from IDFC First Bank and employees of the Municipal Corporation. The matter came to light after an internal inquiry revealed that multiple FDRs, totaling approximately Rs 116.84 crore, did not exist in the bank’s official digital records. The records handed over during the closure of CSCL in March 2025 reportedly showed these funds as active assets, but subsequent verification indicated the documents were fabricated.
Municipal Commissioner Amit Kumar stated that a detailed internal inquiry is underway to identify the extent of the mismanagement. He noted that while the funds, including interest, have been recovered from the bank, the administrative lapses that allowed the discrepancy to go unnoticed for over a year are being addressed. Kumar affirmed that the corporation is now preparing standard operating procedures to govern all future bank transactions to prevent similar occurrences.
The investigation has led to an FIR against a former bank manager and an outsourced accountant who acted as the custodian of the records. Authorities suspect that the funds may have been routed through multiple suspicious accounts. Police have requested detailed transaction histories from the bank to trace the movement of the capital and determine if additional officials were involved in the collusion.
