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Punjab Governor and Chandigarh Administrator Gulab Chand Kataria has recommended a CBI investigation into two major bank frauds in Chandigarh — the Rs 117-crore Chandigarh Smart City Limited (CSCL)-Municipal Corporation scam and the Rs 83-crore CREST fraud. Interestingly, both scans were reportedly executed through the same IDFC First Bank branch in Sector 32 by a common set of accused.

 

Kataria confirmed that he had written to Union Home Minister Amit Shah and Union Home Secretary Govind Mohan, urging that both cases currently being investigated by the Chandigarh Police be handed over to the CBI for a comprehensive and independent probe.

 

“Considering the seriousness of the offences, the inter-state links involved and the possibility that the money trail extends beyond Chandigarh — even outside India — we have requested the Ministry of Home Affairs to transfer both investigations to the CBI,” Kataria said. He added that strict action would be ensured against all those involved, regardless of their position or influence.

 

The two frauds, together involving more than Rs 200 crore, were allegedly carried out at the same IDFC First Bank branch in Sector 32 by a common group of accused. The main accused include former branch manager Ribhav Rishi, bank officials Abhay Kumar and Seema Dhiman, along with several shell company operators, real estate agents, insiders and private individuals.

 

FIR No. 02 dated March 9, 2026, relates to the CSCL-Municipal Corporation fraud and was registered at the Economic Offences Police Station in Sector 17 under multiple sections of the Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act. FIR No. 03 dated March 12, 2026, concerns the CREST fraud and was registered under similar legal provisions at the same police station.

 

Investigators said the fraud took place during the closure of Chandigarh Smart City Limited in March 2025, when its records were being transferred to the Municipal Corporation. At that time, CSCL maintained 22 bank accounts across 12 banks, including one with IDFC First Bank.

 

According to the probe, a hidden bank account was secretly opened at the Sector 32 branch in August 2024 and was never reflected in official records. Funds were allegedly diverted from legitimate CSCL accounts into this hidden account and then routed to shell companies, primarily CAPCO Fintech.

 

When CSCL was formally shut down, the funds lying in the IDFC First Bank accounts were never transferred to the Municipal Corporation as needed. Instead, investigators allege that forged bank statements were created showing that balances had been converted into 11 fixed deposits worth Rs 116.84 crore using fake FDR numbers. The hidden account was completely omitted from official handover documents.

Nalini Malik, then Chief Financial Officer of CSCL, was responsible for handing over financial records, while Anubhav Mishra, an outsourced Municipal Corporation accountant, received them. Investigators believe both allegedly worked with bank officials to prepare forged statements and fictitious deposit records.

The fraud surfaced only in February 2026 — not through an internal audit or vigilance check — but after media reports exposed similar financial irregularities involving Haryana government funds at the same bank. When Municipal Corporation officials approached the bank to encash the fixed deposits, they were informed verbally that the FDRs were fake and did not exist in the bank’s system.

 

CREST also maintained its accounts at the same IDFC First Bank branch. A reconciliation exercise carried out in February 2026 revealed nearly 300 unauthorised deposits and withdrawals. Investigators found a shortfall of Rs 75.16 crore in principal amount and Rs 7.88 crore in interest, taking the total fraud to Rs 83.04 crore.

 

Officials said bank statements periodically sent to CREST from official email IDs of bank officials Abhay Kumar and Seema Dhiman had allegedly been forged. These statements reflected only authorised transactions and hidden illegal withdrawals, allowing the fraud to continue unnoticed for several months.

 

The siphoned funds were reportedly routed through multiple shell companies before being converted into jewellery, bullion and cash. According to investigators, couriers linked to main accused Ribhav Rishi collected valuables, while part of the money was also invested in real estate transactions.

 

So far, Chandigarh Police have apprehended 14 individuals in connection with the two cases. Those arrested include bank officials Ribhav Rishi, Abhay Kumar and Seema Dhiman; shell company operators Abhishek, Swati and Ankur Sharma; CSCL CFO Nalini Malik; real estate agent Vikram Wadhwa; CREST Project Director Sukhwinder Abrol; and CREST employee Sahil Kukkur, along with several others linked to the conspiracy.

 

However, investigators are still examining the role of several senior officials from CSCL, the Municipal Corporation and CREST who remain under scrutiny but have not yet been arrested. Former CSCL Chief General Manager and retired Municipal Corporation Chief Engineer NP Sharma was questioned extensively after disclosure statements and evidence pointed towards his possible involvement, though no arrest has been made so far.

 

In a major administrative action, the Centre has suspended Navneet Kumar Srivastava, an Indian Forest Service (IFS) officer and former Chief Executive Officer of CREST, following recommendations made by Governor Kataria linked to the ongoing probe into the Rs 83-crore fraud. Srivastava had earlier been removed from the position of CREST CEO before the suspension order was formally issued.

 

The recommendation for a CBI probe in Chandigarh comes amid an already ongoing investigation into a related Haryana government funds scam worth more than Rs 550 crore. The CBI has registered an FIR in that case as well.

 

Investigators found that the same shell companies — RS Traders, CAPCO Fintech Services and Swastik Desh Project — were allegedly used to divert funds from eight Haryana government departments through multiple bank accounts at IDFC First Bank and AU Small Finance Bank. Authorities believe the overlap in accused persons and financial channels indicates a wider organised banking fraud network.

 

 Also read: Panchkula MC fraud: Police arrest key accused in ₹2.36-cr case