Chandigarh Smart City Scam: A major financial scandal has rocked the city after the Chief Financial Officer of the Smart City Project Nalini Malik was arrested for allegedly being involved in a massive ₹116-crore fake fixed deposit receipt (FDR) scam. The case, linked to funds belonging to the Municipal Corporation of Chandigarh, has triggered a wide-ranging investigation into bank officials and project authorities.
The arrest was carried out by the Economic Offences Wing (EOW) of the police after investigators uncovered evidence suggesting the creation of fraudulent deposits and shell companies to siphon off public funds.
How the ₹116 Crore Fraud Came to Light
The scam surfaced when officials of the Municipal Corporation approached IDFC First Bank to encash fixed deposit receipts worth more than ₹116 crore. These deposits were believed to have been created using funds transferred during the closure process of Chandigarh Smart City Limited.
However, during verification, bank officials discovered something alarming — the FDRs listed in official records did not exist in the bank’s system.
This discrepancy immediately raised suspicions, prompting officials to report the matter to the police. Soon after, the Economic Offences Wing registered an FIR and launched a detailed investigation.
Key Arrests in the Case
During the probe, police arrested Nalini Malik, the Chief Financial Officer linked to the Smart City project. Investigators believe she played a central role in coordinating with bank officials and others to execute the fraud.
Police have also arrested or questioned several other individuals in connection with the case, including:
- Ribhav Rishi – former branch manager of IDFC First Bank in Sector 32
- Abhay Kumar – relationship manager at the bank
- Seema Dhiman – bank official allegedly linked to the transactions
- Sukhwinder Singh – project director of Chandigarh Renewable Energy Science & Technology Promotion Society
- Sahil Kukkar – accountant associated with the CREST project
Investigators say these individuals allegedly worked together to manipulate financial records and divert government funds.
Allegations of Shell Companies and Fake Deposits
According to investigators, Ribhav Rishi, while serving as branch manager between 2023 and 2025, allegedly created fake FDRs worth ₹116 crore using the bank’s computer systems.
Police claim he opened accounts linked to the Municipal Corporation and then generated fraudulent deposit receipts that appeared legitimate in official documents.
The funds were allegedly diverted through several shell companies created in collaboration with Nalini Malik and Sukhwinder Singh.
Authorities believe a portion of the money was later invested in real estate through alleged associate Vikram Wadhwa.
Money Trail Under Investigation
Investigators suspect that the diverted funds were routed through multiple firm accounts before being withdrawn in cash or transferred to associates.
The money trail reportedly shows suspicious debit and credit entries in bank statements, which eventually exposed the irregularities. Police sources say that some payments were made directly to officials and family members connected to the accused.
Court Proceedings and Remand
During court proceedings, police sought remand for the accused bank officials to further examine financial transactions and uncover the complete conspiracy. Authorities believe that more individuals could be involved in the scam, and additional arrests are possible as the investigation continues.
Impact on Chandigarh’s Smart City Project
The scam has raised serious questions about financial oversight in major urban development projects. The Smart City initiative, designed to modernize infrastructure and services in Chandigarh, now faces scrutiny over internal financial controls.
Experts say the case highlights the urgent need for stronger audit systems and stricter monitoring of public funds.
The ₹116-crore fake FDR scandal has exposed a major breach of financial accountability in a flagship urban development initiative. With senior officials, bank employees, and project authorities now under investigation, the case is expected to unravel a complex network of financial manipulation.
As the probe continues, authorities are focusing on tracing the full money trail and ensuring accountability for those responsible for misusing public funds.