Former CFO Smart city Nalini Malik, bank manager Ribhav Rishi, businessman Vikram Wadhwa named as accused.
The Central Bureau of Investigation (CBI) has filed a chargesheet in a Chandigarh court in connection with the alleged fraud involving more than Rs 116 crore of Chandigarh Smart City Limited (CSCL) funds deposited with IDFC First Bank, Chandigarh.
The over-200-page chargesheet names former IDFC First Bank officials Ribhav Rishi, Abhay Kumar and Seema Dhiman, former CSCL Chief Financial Officer (CFO) Nalini Malik, and businessman Vikram Wadhwa as accused.
The case was initially registered by the Economic Offences Wing (EOW) of Chandigarh Police on March 9 on a complaint filed by the Municipal Corporation Commissioner.
According to the civic body, the fraud came to light during the transfer of funds from Chandigarh Smart City Limited to the Municipal Corporation in a dedicated account maintained with IDFC First Bank.
Police registered a case under Sections 318(4) (cheating), 336(3) (forgery), 338 (forgery of valuable security), 340(2) (fraudulent use of forged documents), 61(2) (criminal conspiracy) and 316(5) (criminal breach of trust) of the Bharatiya Nyaya Sanhita.
The FIR stated that after a similar fraud surfaced in Haryana involving IDFC First Bank, Municipal Corporation officials approached the bank's Sector 32 branch in Chandigarh to encash fixed deposit receipts (FDRs) worth over Rs 116 crore. The FDRs had allegedly been created from funds transferred during the closure of Chandigarh Smart City Limited.
However, the bank informed the civic body that the FDRs did not appear in its system and were fake. The FDRs were allegedly issued by Ribhav Rishi, then manager of IDFC First Bank's Sector 32 branch, during March-April 2025.
Investigators also found that around Rs 8 crore had been transferred without any corresponding entry in Municipal Corporation records. These transactions are suspected to have been routed through shell firms.
The investigation was later transferred to the CBI by the UT Administrator.
According to the CBI, the probe revealed that Smart City funds were diverted to several builders, jewellers and individuals. The agency said funds were routed through companies including Capco Fintech Services, R S Traders and Swastik Desh Project, among others.
The CBI alleged that funds from these companies were subsequently diverted to businessman Vikram Wadhwa for investment in real estate projects. Reverse entries were allegedly made into the accounts whenever required.
The agency has documented the money trail and attached evidence showing how the funds were invested in residential and commercial projects located in Chandigarh, Mohali, Kharar and other areas.
The chargesheet includes transaction records, details of properties allegedly purchased using the diverted funds, and digital evidence related to the alleged fraud.