Chandigarh Police Move Court for Production Warrants in Major Bank Fraud Cases
The UT Police in Chandigarh have filed an application before a Panchkula court, seeking production warrants for three accused individuals in connection with two significant bank fraud cases. These cases involve transactions related to the Chandigarh Municipal Corporation and the Chandigarh Renewable Energy and Science & Technology Promotion Society (Crest), with alleged irregularities amounting to a total of Rs 191 crore.
Details of the Fraud Cases and Accused
The accused named in the application are Abhay Kumar, Seema Dhiman, and Rishav Rishi. The application was submitted on Friday, with a hearing scheduled for next week. However, police officials have indicated they will request the court to advance the hearing date to expedite the legal process.
One case pertains to alleged irregularities in transactions worth Rs 116 crore involving the Municipal Corporation (MC) of Chandigarh. The other case, registered by the Economic Offences Wing (EOW) of UT Police, involves an alleged embezzlement of Rs 75 crore belonging to Crest. This FIR was filed based on a complaint from the Crest project director, invoking various sections of the BNS against the accused, who are employees of IDFC First Bank.
Investigation Findings and Unauthorized Activities
During an internal reconciliation process, Crest officials discovered 303 unauthorized withdrawal and deposit entries in their bank accounts, leading to a principal shortfall exceeding Rs 75 crore. Police are also examining the potential involvement of additional bank officials in these fraudulent activities.
This Crest case is linked to a separate ongoing investigation into suspicious transactions in the accounts of Chandigarh Smart City Limited (CSCL). In that matter, alleged fake fixed deposit receipts (FDRs) worth Rs 116.84 crore and mismatches of Rs 8.22 crore were identified during verification. Following the closure of the CSCL project in March 2025, its assets were transferred to the MC, where the commissioner found that FDRs documented did not exist in the bank's system.
Key Individuals and Broader Probe
The fake FDRs were allegedly issued by Rishav Rishi, the then manager of IDFC First Bank's Sector 32 branch, who is currently in the custody of the Haryana Vigilance Bureau. Additionally, Anubhav Mishra, an outsourced accountant for MC who handled CSCL's financial paperwork, is under scrutiny and remains untraceable, with police teams actively searching for him.
In a broader context, the Haryana Anti-Corruption Bureau is investigating suspicious transactions totaling Rs 590 crore across several state departments. Chandigarh-based businessman Vikram Wadhwa is suspected to be a key conspirator, and Chandigarh Police have seized a Range Rover registered in his name, suspecting possible links between the accused in both cases.
Crest's Official Response and Committee Inquiry
In an official release, Crest maintained that no financial irregularity has been found within the organization. The audit was completed up to March 31, 2025, and accounts were reconciled up to November 2025. However, after media reports in February 2026 highlighted alleged fraudulent activities by IDFC First Bank involving government-linked accounts in Haryana, Crest initiated a reconciliation of its bank accounts.
Crest sought confirmation of balances from IDFC First Bank, which subsequently confirmed that the balances matched Crest's cash books and issued a balance confirmation certificate. According to the release, no financial loss has occurred to Crest or the Chandigarh administration, and all funds remain available in Crest's bank accounts.
A committee constituted by the Chandigarh administration is currently inquiring into the matter to examine any procedural lapses by Crest. Crest is cooperating fully with the inquiry, and findings are still awaited. As a precaution, following an advisory from the finance department, funds held with IDFC First Bank were transferred to Punjab National Bank on February 27, 2026.
