MC seeks CBI probe into Rs.116.8-crore fake FD scam linked to Smart City funds
Chandigarh, April 9 -- In a show of unanimity cutting across party lines, the Chandigarh municipal corporation (MC) House on Wednesday passed a resolution seeking a Central Bureau of Investigation (CBI) probe into the alleged Rs.116.84-crore fake fixed deposit receipt (FDR) scam linked to the Chandigarh Smart City Limited (CSCL) funds, uncovered last month. The proposal will now be forwarded to the UT administration for necessary approvals.
During the General House meeting, MC officials presented a 'white paper' detailing thesuspected financial irregularities. According to officials, the issue surfaced after the Haryana government flagged mismanagement in funds invested in IDFC First Bank and AU Small Finance Bank. Acting on the inputs, MC authorities approached IDFC First Bank in Sector 32, seeking encashment of FDRs and relevant bank statements for verification.
However, scrutiny of the documents revealed that FDRs worth approximately Rs.116.84 crore - shown as active assets in the official handover records - did not exist in the bank statements obtained on February 24. Further examination flagged three payment entries from 2025 amounting to Rs.8.22 crore, which had no corresponding entries in MC records, raising suspicion of unauthorised transactions.
Officials informed the House that on February 25, senior bank authorities indicated that the FDRs appeared to be fake and fraudulent. Subsequently, the bank remitted Rs.121.14 crore to the MC. The civic body, however, clarified that the amount remains subject to reconciliation and audit and cannot be treated as a final settlement. The MC also pushed for registration of an FIR, stating that the involvement of both bank and Smart City officials could not be ruled out.
In the wake of the revelations, the MC has already terminated an outsourced accountant and placed several officials, including an accountant and a superintendent, under suspension. Disciplinary action has also been proposed against a section officer of the UT finance department. These officials were responsible for handling records during the closure of CSCL.
Congress councillor Taruna Mehta, said, "How can one contractual employee be given full authority to manage the Rs.116 crore FD related funds. Who assigned him this task?"
Following this, mayorSaurabh Joshi requested MC commissioner Amit Kumar to present a comprehensive white paper on all Smart City expenditures, in the next meeting, and the House unanimously resolved to seek a CBI inquiry....
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