A major financial scam has emerged in Chandigarh involving IDFC First Bank and its sector 32 branch. The bank manager allegedly collaborated with fraudsters to issue fake fixed deposit receipts (FDRs) amounting to approximately ₹116.84 crore, misleading the municipal corporation (MC). This fraudulent activity came to light during a fund transfer process following the closure of the Chandigarh Smart City Limited (CSCL). The police have registered a case of fraud and initiated a thorough investigation into the matter. The corporation has since recovered nearly ₹121 crore, including interest.

Investigations revealed that the funds intended for the Chandigarh Smart City Limited were supposed to be transferred to the municipal corporation, for which a special account was opened at the bank. The bank manager issued fixed deposit receipts to the corporation that were later found to be entirely fake during the verification process. The scam was exposed when the corporation checked the receipts as part of the fund transfer and discovered that there was no record of the money in the bank’s books.

Preliminary investigations indicate that the branch manager prepared forged documents and misled the municipal corporation. The situation raises significant concerns about the integrity of financial practices within public sector banks, particularly in handling funds designated for public projects. The scandal not only highlights lapses in oversight but also calls for greater scrutiny of financial documents associated with municipal projects, urging lawmakers to implement stricter regulations to prevent such scams in the future.