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Chandigarh: The Chandigarh Police arrested Nalini Malik, Chief Financial Officer of the Smart City Project, in connection with a ₹116 crore fraud involving the Municipal Corporation (MC) Chandigarh and IDFC First Bank. The arrest was made by the Economic Offences Wing (EOW) following an FIR registered on complaints by MC officials regarding fake fixed deposit receipts (FDRs) amounting to over ₹116 crore.
Alleged Conspiracy and Modus Operandi
According to the police, the scam was orchestrated by former bank officials in alleged connivance with government functionaries. Investigators told the court that Ribhav Rishi, a former branch manager of IDFC First Bank, created shell firms in collaboration with Nalini Malik and Sukhwinder Singh, Project Director of the Chandigarh Renewable Energy Science & Technology Promotion Society (CREST).
Rishi, who was posted at the Sector 32 branch between 2023 and 2025, allegedly:
- Opened MC-linked bank accounts in collusion with officials
- Generated fake FDRs worth ₹116 crore using bank systems
- Diverted funds through shell firms and cash transactions
The police further alleged that the siphoned funds were partly invested in real estate, with the help of accused Vikram Wadhwa.
Multiple Arrests and Ongoing Probe
Apart from Malik, the police have already arrested:
- Ribhav Rishi (former branch manager)
- Abhay Kumar (relationship manager)
- Seema Dhiman (bank official)
- Sukhwinder Singh (CREST official)
- Sahil Kukkar (CREST accountant)
Malik’s arrest was based on disclosure statements and documentary evidence gathered during the investigation.
Scam Unearthed During FDR Encashment
The fraud came to light when MC officials approached the bank to encash FDRs worth ₹116 crore, created from funds transferred during the closure of Chandigarh Smart City Limited (CSCL). However, the bank records showed that these FDRs were non-existent, and suspicious debit-credit entries were detected, prompting officials to approach the police.
Investigation Continues
Police told the court that custodial interrogation of the accused is crucial to uncover the full extent of the conspiracy, identify additional beneficiaries and trace the flow of funds. The case has raised serious concerns over financial oversight, internal controls and collusion between bank officials and public servants, with further arrests likely as the probe progresses.
