Chandigarh: A local court remanded former Chandigarh Smart City Limited (CSCL) CFO Nalini Malik to 14-day judicial custody—the first government official held in the ₹116 crore fake Fixed Deposit Receipts (FDRs) scam that surfaced March 8, 2026.
CSCL-MC Merger Fraud Exposed
Arrested April 2 following MC complaint (March 9), Malik allegedly orchestrated fraud during March 2025 CSCL merger with Municipal Corporation. New IDFC First Bank account should hold ₹95.78 Cr but contained only ₹81.20 Cr; 11 fake FDRs worth ₹116.84 Cr concealed shortfall.
Prosecution revealed Malik colluded with MC accountant Anubhav Mishra (absconding since Feb), ex-IDFC manager Ribhav Rishi, CREST project director Sukhvinder Singh, shell firms for ₹50 Cr cash extraction. Funds routed through fabricated investments favoring Municipal Commissioner.
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IDFC Bank Sector 32 Branch Central
CSCL closure consolidated funds into dedicated IDFC account (99988877765). Verification post-Haryana scam reports (Feb 2026) exposed fake FDRs issued by Rishi. MC alerted police March 9; FIR named Mishra, Rishi initially.
Governor VP Singh Badnore mandated CAG audit determining exact loss (revised to ₹117 Cr). MC submits preliminary report; House briefing scheduled. First-ever Chandigarh-scale bank fraud demands comprehensive UT account reconciliation.
Handwriting Forgery Confirmed
Malik’s team allegedly fabricated documents showing pending litigations justifying enhanced payouts. District court orders ignored; higher court dismissals suppressed. Forensic handwriting analysis confirmed signature forgeries on sham agreements.
Conspirators created entities pooling diverted funds for cash withdrawals. ₹14.58 Cr untraced from expected ₹95.78 Cr transfer. Broader Haryana-IDFC pattern suggests systematic banking collusion across states.
Court Rejects Bail, Orders Custody
Police opposed bail citing ongoing inquiry, emerging facts needing custodial interrogation. Malik presented Monday; prosecution emphasized conspiracy depth requiring further evidence preservation. Next hearing pending.
₹116 Cr scam—Chandigarh’s largest—exposes Smart City financial governance collapse. CAG probe, police investigation set audit benchmarks for infrastructure projects nationwide amid recurring municipal embezzlement patterns.
Outsourced MC accountant Anubhav Mishra primary FIR accused, vanished post-scam exposure. Critical documents likely held by absconder. Nationwide lookout pending intensified manhunt.
Fake FDRs issued “in favour of Municipal Commissioner” raises top-level accountability. CREST director Singh, IDFC officials implicated. Governor demands full UT financial reconciliation.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
