Chandigarh MC seeks CAG audit of Smart City funds amid Rs 116-crore IDFC First FDR scam

In a significant development in the Rs 116-crore fake FDRs scam related to IDFC First Bank, Sector 32, Chandigarh Municipal Corporation has recommended a comprehensive audit of the entire amount of Chandigarh Smart City Limited (CSCL) by the Comptroller and Auditor General of India (CAG).

Sources said the recommendation has been sent to the Chandigarh Administration based on the findings of the Municipal Corporation’s internal inquiry report. CSCL has spent over Rs 900 crore on various projects, many of which have been mired in controversy. The MC has also submitted the internal report to the Chandigarh Police for further investigation.

The internal report revealed that a dedicated single account was opened just before the closure of CSCL, and all funds were transferred to this account for operational and maintenance costs. The report states that CSCL was closed in March 2025, and the decision to transfer Rs 116 crore to this account was taken before closure.

Eleven FDRs worth Rs 116 crore were prepared between March 28 and April 6, 2025, for a one-year period. When the scam in Haryana came to light, MC officers approached IDFC First Bank, requesting encashment of FDRs provided by Anubhav Mishra, an accountant (on an outsource basis), who was the custodian of FDRs. However, the bank informed that the FDRs were not appearing in the IDFC Bank system and were fake.

The bank also stated that over Rs 8 crore was transferred to three companies: Capco Fintech Services, RS Traders, and Swastik Desh Project. The FDRs were reportedly issued by Rishab Rishi, the then Bank Manager, IDFC First Bank, Sector-32 Branch, Chandigarh, during March/April 2025.

The MC has terminated Anubhav Mishra’s services and suspended two more employees from the accounts department. Meanwhile, Ajay Jagga, Member, Administrator’s Advisory Council, has written to Gulab Chand Kataria, Administrator, Chandigarh Administration, requesting an order to make the entire financial record of CSCL public.

Jagga stated that the Smart City Mission aimed to address citizens’ aspirations and needs by developing Chandigarh’s urban ecosystem. He questioned why the financial statements were only available up to March 31, 2023, and urged that all financial statements be made public.