Chandigarh: The Chandigarh municipal corporation (MC) has intensified its probe into the fake fixed deposits (FDs) linked to funds transferred from Chandigarh Smart City Limited (CSCL), summoning concerned Smart City officers with more than 50 detailed questions as part of an internal inquiry. The civic body is examining financial transactions dating back to 2024 after it emerged that the FDs were allegedly created soon after the money was transferred to the MC in 2025.Sources said the probe is based on the 2024 audit report, which flagged financial inconsistencies. “The internal investigation covers CSCL’s financial operations, the subsequent transfer of funds to the MC, and the issue of fake FDs. All modes of transactions and internal processes are under review,” an official told TOI.The MC is also scrutinizing the handover of financial records from CSCL to ensure every document related to fund transfer and FD creation is accounted for. “Since the FDs appeared immediately after the transfer of funds, it is being assessed that they may have been fake from the very beginning,” sources added.Meanwhile, Chandigarh Police have questioned employees of the MC’s accounts branch to understand the process followed during the transfer of funds from CSCL to MC. Officials provided the information sought, but police may summon additional records in the coming days.The MC has already deposited the withdrawn amount of Rs 121 crore—including interest—into a public sector bank.
