Chandigarh Municipal Corporation Intensifies Investigation into Fake Fixed Deposits Scandal
The Chandigarh Municipal Corporation (MC) has significantly escalated its ongoing probe into the controversial case of fake fixed deposits (FDs) that are allegedly linked to substantial funds transferred from Chandigarh Smart City Limited (CSCL). In a decisive move, the civic body has summoned concerned Smart City officers and presented them with a comprehensive list of more than fifty detailed questions as part of a rigorous internal inquiry.
Examining Financial Transactions Dating Back to 2024
The municipal corporation is meticulously examining financial transactions that date back to the year 2024. This thorough investigation follows revelations that the fixed deposits in question were allegedly created shortly after the money was transferred to the MC in 2025. Sources within the administration have indicated that the probe is fundamentally based on the critical 2024 audit report, which originally flagged numerous financial inconsistencies and irregularities.
"The internal investigation comprehensively covers CSCL's financial operations, the subsequent transfer of funds to the MC, and the critical issue of the fake FDs. All possible modes of transactions and internal processes are currently under intense review," a senior official told reporters, emphasizing the scope of the inquiry.
Scrutinizing Financial Records and Handover Procedures
In addition to questioning officers, the MC is rigorously scrutinizing the handover of financial records from Chandigarh Smart City Limited to the municipal corporation. This step is crucial to ensure that every single document related to the fund transfer and the creation of the fixed deposits is properly accounted for and thoroughly verified.
"Since the FDs appeared immediately after the transfer of funds, it is being carefully assessed that they may have been fake from the very beginning," informed sources added, highlighting the timeline that has raised serious suspicions among investigators.
Police Involvement and Recovery of Funds
Meanwhile, the Chandigarh Police have actively entered the investigation by questioning employees of the MC's accounts branch. The police aim to understand the precise process and procedures that were followed during the transfer of funds from CSCL to the municipal corporation. While officials have cooperated by providing the information sought so far, police authorities may summon additional records and documents in the coming days as the probe deepens.
In a significant development, the Chandigarh Municipal Corporation has already taken corrective action by depositing the withdrawn amount, which totals Rs 121 crore including accrued interest, into a reputable public sector bank. This move aims to secure the funds and ensure proper accounting while the investigation continues to unfold.
The intensified probe underscores the municipal corporation's commitment to transparency and accountability in handling public funds, particularly those linked to high-profile Smart City projects. As the investigation progresses, more details are expected to emerge regarding the alleged financial mismanagement and the creation of the fake fixed deposits.
