Chandigarh Smart City-CREST scam: Police add sections under Prevention of Corruption Act against all accused
These sections entail imprisonment from three to seven years, along with fines
The Chandigarh Police have added sections under the Prevention of Corruptions Act against all accused in an alleged Rs 116-crore fake FDR scam of Chandigarh Smart City Company Limited (CSCL) and Rs 75 crores scam of Chandigarh Renewable Energy & Science & Technology Promotion Society (CREST).
The police have provided the information to a Chandigarh court. These sections entail imprisonment from three to seven years, along with fines.
The police initially registered the first case under Sections 318(4), 338, 336 (3), 340(2), 61(2) and 316(5) BNS, at the Police Station, EOPS, Sector-17, Chandigarh, on March 9 on the complaint of the Commissioner of Municipal Corporation. The second FIR was registered on the complaint of Chief Executive officer, CREST.
In the complaint, he alleged unauthorised transactions in CREST bank accounts maintained with the IDFC First Bank, Sector-32, Chandigarh.
He alleged that the transactions were neither initiated by the Accounts Branch of CREST nor approved by the signing authorities of CREST.
As a result of these unauthorised transactions, a total shortfall in the principal amount of Rs 75,16,04,293 has been identified.
In the FIR registered in the Smart City funds case, it has been alleged that FDRs amounting to Rs 1,16,84,01,664 were found to be fake, and illegal payments of over Rs 8 crore were also reported to shell companies.
The police have arrested bank employees and officers of Chandigarh Smart City company and CREST in the case.
They have also not ruled out involvement of more bank officials and officials of Chandigarh Smart City Limited in this case. The police said that in view of this, the sections under the Prevention of Corruptions Act have also been added against all accused in the case. The Prevention of Corruption Act, 1988, covers the solicitation, acceptance, and attempt to obtain undue advantage by public servants, as well as bribery by private individuals. The act was amended in 2018 to strengthen penalties, redefine criminal misconduct, and include provisions for punishing commercial organisations involved in bribery.
Conviction under the Prevention of Corruption Act, 1988, (as amended in 2018) for public servants taking bribes (Section 7) carries an imprisonment from three to seven years, along with fines. Criminal misconduct (Section 13) entails four to 10 years of imprisonment.
