Chandigarh Civic Body's Funds Embezzlement Scam: Mayor Joshi Presents Detailed Paper
Chandigarh, India - In a shocking turn of events, the Chandigarh civic body's funds have been embezzled in a massive scam, with the Mayor, Joshi, stating that all party lines are on the same page regarding the issue.
Request for Special Audit
The Mayor presented a detailed paper on the scam, seeking details from officers, and requesting a special audit of Chandigarh Smart City Limited (CSCL) before and after its closure to establish financial irregularities and loss to the Government/Municipal Corporation, Chandigarh.
Congress Councillors Protest
As the Congress councillors protested in the House over the entire scam, the Mayor stated that all of them had similar sentiments over the issue.
Sequence of Details
- After the scam came to light in Haryana, the MC officials approached IDFC First Bank, Sector 32, Chandigarh, requesting encashment of FDRs as per office records of bank statement of April 22, 2025.
- The bank statement copies were requested for scrutiny and examination, and the transfer of the entire balance (including updated interest) lying in account no. 99988877765 to MCC's PNB account no. 00382010033490.
Scrutiny of Bank Statements
On scrutiny of records provided by IDFC First Bank, it was found that the FD amounting to Rs 116.84 crore, which were shown as active assets in the handed-over records, do not exist in the bank statement obtained from the IDFC Bank on February 24, 2026.
Suspicious Payment Entries
- Scrutiny of the bank statement received on February 24, 2026, revealed that three payment entries, dated April 11, 2025 (two entries of CAPCO FINTECH) and September 1, 2025 (one entry of SUNLIVE SOLAR SYSTEM) amounting to Rs 78.22 crore had no corresponding reflection in the records of MCC regarding payments made to the agencies concerned.
- Therefore, it appeared suspicious and required detailed investigation.
Fake and Fraudulent Bank Statement
On February 25, 2026, the regional head and cluster head of IDFC First Bank informed that bank statement, dated April 22, 2025, and FDRs amounting to Rs 116 crore appear to be fake and fraudulent.
Remittance of Funds
Due to prompt action by the office in the IDFC First, Branch Sector-32, Chandigarh, the IDFC First Bank has remitted Rs 1,21,14,82,833.37 to the MCC PNB Account No. 00382010033490 on 25.02.2026.
Request for FIR and Investigation
The MCC has categorically clarified to the IDFC First Bank that the above amount is subject to reconciliation and audit, may not be treated as full and final claim of MCC, and further reserves its rights and remedies to recover the amounts/dues, if any.
Registration of FIR and Investigation
Following this, SSP, UT, Chandigarh vide this office letter no. MCC/2026/311, dated 05.03.2026 was requested for registration of FIR and detailed investigation in the matter.
Involvement of Officials
The involvement of bank officials and officials of Chandigarh Smart City Limited cannot be ruled out in this case.
Disciplinary Action
The Municipal Corporation has terminated the services of the accountant on outsource basis and already placed delinquent officials concerned, that is, accountant, superintendent under suspension, and the disciplinary action has also been proposed against the section officer of the Finance Department, UT Chandigarh.
Criminal Case
A case was registered on March 9 this year under sections 318(4), 338, 336 (3)