Chandigarh Police Arrests CFO in ₹116.84 Crore MC FDR Fraud Case
The arrest of Chandigarh Smart City Ltd (CSCL) former CFO, Malik, marks a significant development in the probe into the alleged ₹116.84 crore fraud, which is suspected to have been carried out in collusion with government officials and IDFC First Bank officials.
Background of the Case
The alleged siphoning of municipal corporation (MC) and CSCL funds through fake fixed deposit receipts (FDRs) came to light last month when the civic body approached the bank seeking withdrawal or transfer of invested funds.
According to police, the fraud traces back to March 2025, when CSCL was merged with MC. Malik, as CFO of CSCL at the time, was part of the official team tasked with handing over financial records and accounts to the civic body, and is alleged to have played a key role in the diversion of funds during the process.
Investigation Unravels a Web of Conspiracy
- Malik and other MC officials allegedly received over ₹50 crore in cash from siphoned public funds, indicating a well-oiled conspiracy.
- Police alleged that Malik, in collusion with accountant Anubhav Mishra, other officials, and bank staff, orchestrated the creation of 11 forged FDRs to conceal the missing funds.
- Malik's mobile number was registered with a key CSCL-linked IDFC bank account, indicating her knowledge and control over financial transactions.
Co-Accused Implicate Malik in the Crime
- Co-accused and former bank manager Ribhav Rishi disclosed that he had opened MC bank accounts in the Sector 32 branch of IDFC First Bank in connivance with civic officials and generated forged FDRs worth around ₹116 crore.
- Rishi also disclosed that multiple shell firms, including CAPCO Fintech, RS Traders, and Swastik Desh Project, were created to route the siphoned funds.
Malik's Role in the Fraud Uncovered
Police said Malik received ₹2 lakh in her personal YES Bank account from shell firm Swastik Desh Project, while a substantial portion of the embezzled funds — over ₹50 crore — was allegedly distributed in cash among her and other officials.
The diverted money was further routed into real estate investments through Chandigarh-based realtor Vikram Wadhwa, who has already been arrested in the case.
Cases Related to the MC FDR Fraud
- So far, Wadhwa and three IDFC First Bank officials — Ribhav Rishi, Abhay Kumar, and Seema Dhiman — have been arrested in the MC FDR fraud.
- The three bankers are also accused in a separate ₹83-crore CREST fund diversion case, also being probed by Chandigarh Police.
Custodial Interrogation of Malik to Unravel More Details
Police said custodial interrogation of Malik was crucial to recover the embezzled funds, confront her with other accused already in custody, and verify the disclosures made by co-accused.
The remand will also help investigators identify other senior officials who may have been involved in the fraud. Further investigation is underway.