Chandigarh MP Tewari flags Smart City’s Rs 125-crore fraud in Lok Sabha

Alleging serious “financial irregularity” in the Chandigarh Municipal Corporation (MC) concerning the transfer of funds from Chandigarh Smart City Limited (CSCL), Chandigarh MP Manish Tewari, while speaking in the Lok Sabha under Rule 377, drew the attention of the House to a matter that gravely undermines public trust and financial governance.

Tewari told the House that, according to recent reports, an internal inquiry has revealed discrepancies amounting to Rs 120–125 crore in the transfer of CSCL funds to the MC.

“Alarmingly, three fraudulent debit entries amounting to over Rs 18 crore have also been detected in the Corporation’s accounts following the transfer,” he said.

Tewari told the House that the inquiry points to fraudulent transactions even before CSCL’s closure, involving fake fixed deposit receipts and forged bank statements – clear evidence of deliberate manipulation.

“These findings point towards serious lapses in financial oversight, internal controls and verification mechanisms within both the banking channel and the Municipal Corporation,” he pointed out.

Tewari underscored the seriousness of the matter, stating that this issue raises grave concerns regarding the safety of public funds, the accountability of officials and the robustness of financial governance in urban local bodies.

Tewari urged the government to ensure a time-bound, independent forensic audit of all transactions, adding, “The accountability of officials and institutions involved should be fixed. Also, there is a need to immediately put in place stronger safeguards, including technology-enabled verification and audit systems, to prevent recurrence.”

He emphasised that the matter involves public money and warrants urgent attention and corrective action.