Chandigarh Smart City CFO Arrested in Major Financial Scam
The Economic Offences Wing (EOW) made a significant breakthrough on Thursday by arresting Nalini Malik, the chief finance officer of the Chandigarh Smart City project. This arrest is directly connected to a massive Rs 116 crore fake fixed deposit receipt (FDR) scam that involves the Chandigarh Municipal Corporation.
Arrest and Investigation Details
Police officials took Malik into custody from her residence in Mohali, following a period during which she was reported missing after her name emerged in the case. The investigation centers on the alleged embezzlement of government funds through the creation of counterfeit FDRs worth Rs 116 crore, linked to IDFC First Bank.
Authorities stated that Malik's arrest was based on evidence gathered during the ongoing investigation and disclosures made by other suspects who have already been apprehended. An officer involved in the case indicated that more arrests are likely as the probe deepens.
Background of the Scam
The EOW registered the case after receiving a formal complaint from officials of the Chandigarh Municipal Corporation. According to court documents, the alleged fraud involved Ribhav Rishi, a former branch manager of IDFC First Bank, who is accused of creating shell companies in collusion with Malik and Sukhvinder Singh, the project director of CREST (Chandigarh Renewable Energy & Science and Technology Promotion Society).
Through these shell companies, fake investment documents were reportedly prepared, leading to the embezzlement of crores of rupees. Rishi was posted at IDFC First Bank's Sector-32 branch from 2023 to 2025, a period during which municipal accounts were opened at this branch and the fake FDRs worth Rs 116 crore were allegedly fabricated.
Other Suspects and Key Developments
In addition to Malik, police have already arrested CREST's project director Sukhvinder Singh and accountant Sahil Kukkar in connection with this case. The role of a bank relationship manager is also under suspicion, and the name of former bank official Seema Dhiman has been included in the First Information Report (FIR).
The scam came to light when Municipal Corporation officials requested IDFC First Bank to encash fixed deposits worth Rs 116 crore, which were supposed to be linked to funds transferred during the closure of Chandigarh Smart City Limited. During the investigation, suspicious transactions were identified in bank statements, and it was discovered that the fixed deposit receipts shown in official records did not exist in the bank's actual records.
Impact and Next Steps
Following these revelations, the Municipal Corporation filed a formal complaint with the police, leading to the current arrests. Malik's arrest is viewed as a crucial step in unraveling the full extent of the financial irregularities. The Economic Offences Wing continues to investigate the matter, with a focus on uncovering all individuals involved and recovering the embezzled funds.
