New Delhi: A major banking fraud linked to government development funds has come to light in Chandigarh. It is alleged that fake fixed deposit receipts (FDRs) worth around ₹116.84 crore were issued from a branch of IDFC First Bank. The issue surfaced during the verification of bank documents by the Municipal Corporation while processing a fund transfer related to Chandigarh Smart City Limited (CSCL).
Initial findings revealed that the fixed deposit receipts provided to the Municipal Corporation did not exist in the bank’s official records. Following the discovery, a formal complaint was filed and an investigation into the entire matter has now been initiated.
Fraud discovered during fund transfer process
According to available information, funds belonging to Chandigarh Smart City Limited (CSCL) were supposed to be transferred to the account of the Municipal Corporation Chandigarh. For this purpose, a dedicated account had been opened at the bank.
Officials stated that fixed deposit receipts were issued to the Municipal Corporation in return for depositing the funds at the branch. However, when the documents were later cross-checked with the bank’s official records, it was discovered that FDRs worth approximately ₹116.84 crore were completely fake.
No official deposit corresponding to this amount was found in the bank’s digital systems or documentation, raising strong suspicions of large-scale financial fraud.
Case registered amid fraud suspicion
Based on the complaint filed by the Municipal Corporation, a case has been registered under several provisions of the Bharatiya Nyaya Sanhita (BNS). Investigators are now trying to determine who was involved in the alleged fraud and how the forged documents were created.
The investigation is examining the role of the concerned branch manager along with other bank employees and individuals associated with the Municipal Corporation. Preliminary indications suggest that internal collusion cannot be ruled out in executing a fraud of this magnitude.
How the forgery came to light
Sources indicated that certain documents were prepared at the branch level and issued to Municipal Corporation officials with the bank’s seal. These papers were presented as genuine fixed deposit receipts.
However, when the Municipal Corporation carried out an independent verification of the documents, it was found that no such deposit existed in the bank’s official system.
Investigators are now trying to determine whether the funds were transferred to another account or diverted through some other mechanism.
Possible impact on development projects
Following the revelation of financial irregularities involving such a large amount, authorities have started reviewing other accounts linked to the Municipal Corporation and the Smart City Mission.
Experts believe that incidents of this nature involving government project funds not only raise questions about administrative oversight but could also slow down ongoing development works.
After the incident, authorities decided to conduct a comprehensive audit of financial transactions and deposits to identify any additional irregularities at an early stage.
Earlier controversy also surfaced
It is noteworthy that Chandigarh had earlier witnessed another major banking controversy involving alleged irregularities worth hundreds of crores of rupees. In that case, a substantial portion of the funds was reportedly recovered later.
The latest development has once again raised concerns about transparency in financial dealings between banking institutions and government bodies.
Focus of the investigation
Investigating authorities are currently focusing on identifying the level at which the fake fixed deposit receipts were created, who authorised them, and who may be the mastermind behind the alleged scheme.
If the allegations are proven, the case could be considered one of the biggest banking frauds reported in Chandigarh in recent times. The investigation is ongoing, and further significant revelations are expected in the coming days.
