Chandigarh Municipal Corporation Calls for CAG Audit in Rs 116 Crore Fake FDR Scam
In a major development concerning financial irregularities, the Municipal Corporation (MC) of Chandigarh has formally recommended a comprehensive audit by the Comptroller and Auditor General of India (CAG) into the entire funds of the Chandigarh Smart City Company Limited (CSCL). This move follows the uncovering of a Rs 116 crore fake Fixed Deposit Receipt (FDR) scam linked to IDFC First Bank.
Internal Probe Exposes Critical Lapses in Smart City Finances
Sources within the MC revealed that the recommendation for the CAG audit has been forwarded to the Chandigarh Administration, based on findings from an internal inquiry report. The CSCL, which was operational until its closure in March 2025, expended over Rs 900 crore on various urban development projects, many of which have since been embroiled in controversy.
The internal report, which has also been submitted to the Chandigarh Police for further investigation, highlighted significant procedural failures. It disclosed that a dedicated single account was established just prior to the CSCL's shutdown, intended to consolidate all funds from multiple accounts for operational and maintenance expenses of ongoing projects. Approximately Rs 116 crore was transferred into this account before the company ceased operations.
Details of the Fake FDR Scam Emerge
According to the report, a total of 11 FDRs, amounting to Rs 116 crore, were purportedly issued by IDFC First Bank between March 28 and April 6, 2025, with a one-year tenure. The scam came to light when MC officers, following revelations of a similar fraud in Haryana, approached the bank's Sector 32 branch in Chandigarh to encash these FDRs, which were in the custody of outsourced accountant Anubhav Mishra.
The bank officials, however, confirmed that the FDRs were non-existent in their system and were fraudulent. Further investigations revealed that over Rs 8 crore had been illicitly transferred to three entities: Capco Fintech Services, RS Traders, and Swastik Desh Project. These fake FDRs were allegedly issued by Rishab Rishi, the then branch manager of IDFC First Bank, during the March-April 2025 period.
Administrative Actions and Public Demands for Transparency
In response to the scandal, the MC has terminated the services of Anubhav Mishra and suspended two additional employees from the accounts department. Meanwhile, Ajay Jagga, a member of the Administrator's Advisory Council, has written to UT Administrator Gulab Chand Kataria, urging the public disclosure of all CSCL financial records.
Jagga emphasized that the Smart City Mission was initiated to enhance Chandigarh's urban ecosystem through institutional, physical, social, and economic infrastructure. He expressed shock that the mission's website only displays balance sheets up to March 31, 2023, despite the mission's conclusion and ongoing financial mismanagement issues. He questioned the lack of transparency and called for immediate directives to make complete financial statements accessible to the public.
This case underscores growing concerns over financial governance in urban development projects, with authorities now pushing for stringent audits and police action to address the lapses.
