Chandigarh Municipal Corporation Calls for CBI Investigation into ₹116.84 Crore Scam Linked to Smart City Funds
MC seeks CBI probe into ₹116.84-crore fake FD scam linked to Smart City funds
Hindustan Times
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The Chandigarh Municipal Corporation (MC) has unanimously passed a resolution to request a Central Bureau of Investigation (CBI) probe into a ₹116.84 crore fake fixed deposit receipt scam associated with Chandigarh Smart City Limited funds. The scam was uncovered following financial irregularities flagged by the Haryana government, leading to suspensions of several officials.
- 01The Chandigarh MC seeks a CBI investigation into a ₹116.84 crore scam linked to Smart City funds.
- 02Financial irregularities were highlighted by the Haryana government, prompting further scrutiny.
- 03Three suspicious payment entries totaling ₹8.22 crore were flagged during document examination.
- 04Several officials, including an outsourced accountant, have been suspended amid the investigation.
- 05The MC has requested a special audit of Chandigarh Smart City Limited to assess financial losses.
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The Chandigarh Municipal Corporation (MC) has passed a resolution requesting a Central Bureau of Investigation (CBI) probe into an alleged ₹116.84 crore fake fixed deposit receipt scam linked to the Chandigarh Smart City Limited (CSCL) funds. This decision follows a presentation during the General House meeting that revealed significant financial irregularities, initially flagged by the Haryana government. The investigation began after officials discovered that fixed deposit receipts, which were recorded as active assets, did not exist in the bank statements. Additionally, three suspicious payment entries from 2025 totaling ₹8.22 crore raised further concerns about unauthorized transactions. Following these findings, the bank confirmed that the FDRs appeared fraudulent and remitted ₹121.14 crore to the MC, although this amount remains subject to reconciliation. In response to the scandal, the MC has suspended several officials and requested a special audit of CSCL to determine financial losses and accountability. Councillors expressed dissatisfaction with the handling of such a large sum by a contractual employee and demanded accountability from senior officials, leading to a call for a comprehensive review of all Smart City expenditures in future meetings.
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The investigation could lead to accountability for financial mismanagement, affecting public trust in local governance and potentially resulting in changes to how municipal funds are managed.
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