Chandigarh: The internal inquiry conducted by the Chandigarh Municipal Corporation has uncovered serious discrepancies in the transfer of Chandigarh Smart City Limited (CSCL) funds to the MC in March 2025.According to the inquiry report, a major mismatch was detected in the financial amount transferred during the handover of CSCL’s accounts to the MC. Initial probe also revealed that several fraudulent transfers had allegedly taken place from CSCL’s bank accounts at IDFC First Bank, Sector 32, even before CSCL was officially closed in March 2025. Sources said the internal inquiry covered multiple aspects of the fund transfer process. During this exercise, three allegedly fresh “fraudulent” debit entries, collectively amounting to over Rs 8 crore, were identified within the MC’s financial records. These entries surfaced after CSCL funds had already been transferred to the MC, raising concerns about lapses that occurred both before and after the handover.Sources told TOI that the mismatch detected during reconciliation was extremely concerning. An amount between Rs 20 crore and Rs 25 crore, including interest, appeared mismatched when comparing the financial records of CSCL with the funds formally transferred to the Municipal Corporation in 2025. Officials said the amount may undergo slight changes once a complete reconciliation is carried out with banks. Sources said the inquiry found that officials of the MC’s accounts department did not properly examine records at the time of the handover and takeover of financial data from CSCL, leading to unchecked discrepancies. The internal inquiry report stated that prima facie, there were multiple fraudulent transfers of funds from CSCL’s bank accounts at the IDFC First Bank, Sector 32 branch before the closure of CSCL in March 2025. These funds were later handed over to the municipal corporation. The report further confirmed that three fraudulent debit entries, amounting to around Rs 8.22 crore, allegedly occurred after transfer to the MC.As the internal inquiry pointed towards suspicious roles of certain employees and IDFC First Bank officials, the UT administration directed the MC to submit the Internal Committee’s report to the Chandigarh Police. The UT administration instructed that a detailed investigation be conducted to identify officials and other individuals possibly involved in preparing fake fixed deposit receipts (FDRs) and forged bank statements linked to the scam.A senior UT official told TOI that the findings of the internal inquiry had already been thoroughly discussed with senior officers of the Chandigarh administration. The official added that the entire report would be handed over to the police within one or two days. Furthermore, senior bank officials had been summoned and asked to complete a detailed reconciliation of the account statements in a time-bound manner to establish a clear financial picture and identify the extent of fraudulent activities.In addition to this, the MC has also written to the office of the UT Accountant General (AG), seeking a comprehensive audit of all financial records from before and after the transfer of CSCL funds to the MC. Sources said the MC wanted a third agency to verify accounts independently to ensure that every aspect of the fund transfer was examined thoroughly. The request for the AG’s audit was made following directions from senior UT officials involved in the review of the inquiry findings.The internal inquiry also led to disciplinary action being initiated against three officials of the MC’s Accounts Branch, who were found negligent in performing their duties during the review and handover of financial documents.Inquiry highlights A: Several “fraudulent” transfers of funds from bank accounts of CSCL in IDFC First Sector 32 Branch before closure of CSCL in March 2025, and then given to the MC.B: Three fraudulent debit entries over Rs 8 crore after transfer to the MC C: Reconciliation of the amounts will be done with IDFC First Bank D: Internal Committee report to be submitted to the police for a detailed investigation to take strict action against the guilty in preparation of fake FDRs and bank statements E: Requested the AG, UT for a detailed audit of accounts before and after the transfer to MC F: Disciplinary action was initiated for dereliction of duty against the three officials of the accounts branch who were found negligent in performing their duties MSID:: 129577530 413 |
