Chandigarh Municipal Corporation to Unveil Comprehensive Report on Massive Fake FD Fraud
The Chandigarh Municipal Corporation (MC) is poised to present an exhaustive and detailed report concerning the staggering Rs 116 crore fake fixed deposit (FD) fraud case during the upcoming general house meeting scheduled for Wednesday. This presentation will serve as a critical update for all councillors and stakeholders involved.
Full Briefing on Financial Irregularities and Recovery Measures
According to informed sources within the municipal corporation, senior officials will conduct a thorough briefing for councillors. This session will meticulously outline the complete sequence of events that led to the alleged financial irregularities. The presentation will comprehensively cover several key aspects, including the specific steps undertaken by the MC to recover the misappropriated funds, the disciplinary action initiated against implicated employees and staff members, the formal complaint lodged with Chandigarh Police, and the current status of the substantial amount transferred from Chandigarh Smart City Limited (CSCL) to the municipal corporation. All pertinent records, documents, and factual evidence related to this complex case will form an integral part of this official presentation.
Discovery of Fraud and Initial Investigation Findings
The fraudulent scheme initially came to light when IDFC First Bank formally notified the civic body that the fixed deposit receipts (FDRs) in question were entirely non-existent within the bank's official system and were, in fact, counterfeit documents. These fake FDRs were allegedly issued in the year 2025 by the then-manager of IDFC First Bank's Sector 32 branch in Chandigarh.
Subsequent and rigorous scrutiny of the bank statements revealed three highly suspicious payment entries dated April 11, 2025, and September 1, 2025. These entries, totaling a significant Rs 8.22 crore, did not correspond with the municipal corporation's own internal records of payments made to various agencies. This glaring discrepancy immediately raised serious suspicions and prompted the launch of an extensive and detailed probe into the matter.
Identification of Suspicious Entries and Fake FDs
During the preliminary examination phase, officials discovered numerous debit and credit entries that appeared highly questionable. This discovery was made while carefully comparing the original bank statements with the records and statements that had been submitted to the municipal corporation at the time of the Smart City project's official closure. Notably, the bank statement provided in March 2025 was found to contain several suspected fake entries, further deepening the investigation.
Sources confirmed that details of eleven highly suspicious fixed deposits, amounting to a colossal Rs 116.84 crore, were successfully identified. These fixed deposits, which were prominently shown as active assets within the handed-over project records, were conspicuously absent from the official bank statement obtained directly from IDFC First Bank on February 24, 2026.
Bank Remittance and Ongoing Reconciliation Process
Following subsequent and intense deliberations between the bank and the municipal corporation, IDFC First Bank remitted a total of Rs 121.14 crore to the MC's account. However, municipal corporation sources have explicitly clarified the conditional nature of this transaction.
The MC has clearly and unequivocally informed IDFC First Bank that the amount remitted is strictly subject to a full reconciliation and comprehensive audit process and should not be treated as a final settlement under any circumstances. Any additional dues, if discovered and verified during the reconciliation, will be formally claimed by the municipal corporation at a later stage, the sources emphasized.
Documentation and Further Actions to be Disclosed
Anticipating numerous questions from councillors during the meeting, the municipal corporation will also place on the official record all internal files and the detailed complaint submitted to Chandigarh Police. This complaint served as the basis for the registration of a First Information Report (FIR) in the case.
Furthermore, the presentation will include specific details regarding the disciplinary action taken against employees involved in the scandal. Correspondence sent to the Director General of Audit (Central), Union Territory, Chandigarh, will also be shared. This correspondence formally seeks a special audit of Chandigarh Smart City Limited's finances, covering both the period before and after its official closure.
Municipal corporation officials stated that this special audit has been specifically requested to definitively ascertain the full extent of the financial irregularities and to accurately assess any potential loss incurred by the municipal corporation as a result of this elaborate fraud.
