Chandigarh Smart City Scandal: Officials and Bankers Accused of Multi-Crore Embezzlement
Investigations into a major financial scandal involving the Chandigarh Smart City Project and the Chandigarh Renewable Energy and Science and Technology Promotion Society (Crest) have uncovered a complex web of alleged corruption. Police reports indicate that several officials colluded with bank employees to embezzle funds amounting to crores of rupees through sophisticated fraudulent schemes.
Shell Companies and Forged Instruments Used to Divert Funds
According to the Economic Offences Wing (EOW), the accused allegedly utilized multiple shell companies to siphon money from municipal corporation (MC) and Crest accounts. Investigators have discovered fake fixed deposit receipts (FDRs), revealing extensive manipulation of financial records to artificially inflate account balances and conceal the illicit flow of funds.
Key officials implicated in the probe include:
- Chief Accounts Officer Nalini Malik
- Chief Executive Manager Narendra Pal Sharma
- Crest Project Director Sukhwinder Singh
Notably, Sukhwinder Singh had previously filed a complaint in a separate alleged scam involving approximately Rs 75 crore within Crest. Authorities are now scrutinizing his potential involvement in this current case, adding a layer of complexity to the investigation.
Bank Official's Central Role in Creating Shell Entities
Investigations have revealed that bank official Ribhav Rishi allegedly played a pivotal role in establishing shell firms—Capco Fintech, RS Traders, and Swastik Desh Projects. These entities were reportedly created specifically to divert government funds into various private accounts, effectively obscuring the transaction trail.
Officials stated that accounts for these shell companies were opened using the names of the accused individuals and their associates. Funds totaling several crores were allegedly transferred to Malik, Sharma, Singh, and their relatives, with some transactions reportedly conducted in cash to further avoid detection.
Fake FDRs Worth Rs 116 Crore Generated
Between 2023 and 2025, investigators found that fake FDRs valued at around Rs 116 crore were generated while Ribhav Rishi was stationed at a private bank branch in Sector 32. These fraudulent financial instruments were used to reflect inflated balances in the banking system before the money was channeled through the network of shell companies.
Another individual under investigation is Abhay Kumar, who worked as a relationship manager at the same bank branch. The role of additional bank officials, including Seema Dhiman, is also being closely examined as part of the expanding probe.
Embezzled Funds Invested in Real Estate
Preliminary findings suggest that a portion of the embezzled money was invested in real estate with assistance from co-accused Vikram Wadhwa. Investigators are meticulously examining property documents, investment trails, and financial records to trace the movement of illicit funds and identify all assets acquired through the scam.
Authorities are actively attempting to recover the computer system allegedly used to generate the fake FDRs. Digital evidence—including transaction records, email communications, and banking data—is expected to play a crucial role in establishing the full scope and magnitude of the financial fraud.
Intensified Investigation and Anticipated Developments
The EOW has significantly intensified its investigation, focusing on comprehensive analysis of financial transactions, company records, and the involvement of all named individuals. Officials anticipate further arrests and disclosures as the probe deepens, potentially uncovering additional layers of this multi-crore embezzlement scheme.
The scandal highlights serious vulnerabilities in financial oversight mechanisms within government projects and underscores the need for enhanced transparency and accountability in public fund management.
