Chandigarh MC recommends CAG audit in Rs 116-cr fake FDR scam

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

Sources said the recommendation had been sent to the Chandigarh Administration based on the findings of the corporation’s internal inquiry report. The CSCL has spent over Rs 900 crore on various projects during its existence, many of which later became mired in controversy.

The MC has also submitted the internal report to the Chandigarh Police for further investigation. Sources said the report revealed that a dedicated single account was opened just before the closure of the CSCL. All funds held by it in different accounts were to be transferred to this account for meeting operational and maintenance costs of various projects. The CSCL was closed in March 2025. The decision to transfer the entire amount, around Rs 116 crore, from different accounts into a single account was taken prior to the company’s closure.

As per the report, a total of 11 FDRs amounting to Rs 116 crore were prepared in the bank between March 28 and April 6, 2025, for one year.

When the Haryana scam came to light, MCC officers approached IDFC First Bank, Sector 32, Chandigarh, seeking encashment of the FDRs provided by Anubhav Mishra, an outsourced accountant who was custodian of the FDRs. However, the bank informed them that the FDRs did not appear in the bank’s system and were fake.

The bank also informed that over Rs 8 crore had been transferred to three companies -- Capco Fintech Services, RS Traders and Swastik Desh Project. These FDRs were reportedly issued by Rishab Rishi, then branch manager of IDFC First Bank, Sector 32, during March-April 2025.

The MC has already terminated the services of Anubhav Mishra and suspended two more employees of the accounts department.

Meanwhile, Ajay Jagga, member, Administrator’s Advisory Council, has written to UT Administrator Gulab Chand Kataria requesting an order to make the entire financial record of the CSCL public. Jagga said the smart city mission was launched to meet the aspirations and needs of citizens by developing the overall urban ecosystem of Chandigarh, based on four pillars -- institutional, physical, social and economic infrastructure.

He said now that the mission was over and several issues had arisen regarding financial mismanagement, it was shocking that the website showed balance sheets only up to March 31, 2023. He questioned why the complete financial statements were not in the public domain and what was being hidden. He requested that directions be issued to make all financial statements public.