Chandigarh Bank Scandal Investigation Update: CAG Audit Results
Chandigarh Bank Scandal Exposes Widespread Financial Irregularities
A staggering Rs 117 crore has been lost in a massive bank scam in Chandigarh, with the actual extent of the damage still unknown.
Key Findings:
- Special audit initiated by the Comptroller and Auditor General (CAG)
- Losses estimated to be around Rs 117 crore
- Forced banking instruments and shell companies involved
- IDFC First Bank’s Sector 32 branch compromised
The scheme began to unravel in February 2026, when officials attempted to encash fixed deposit receipts worth Rs 108.73 crore.
Investigation Details:
- 11 separate Fixed Deposit Receipts (FDRs) found to be fabricated
- Fabricated FDRs used during the winding up of Chandigarh Smart City Limited in March 2025
- Shell companies created to facilitate the transfer of illicit funds
- Similar patterns of fraud discovered involving the Chandigarh Renewable Energy Science and Technology Promotion Society
In response to the crisis, the Punjab Governor and Chandigarh Administrator, Gulab Chand Kataria, has ordered a comprehensive audit of all administration accounts.
Former Chief Financial Officer of Chandigarh Smart City Limited has been arrested, and several high-ranking retired officials have been summoned for questioning.
Next Steps:
- Law enforcement agencies tracing the money trail to identify the ultimate recipients of the siphoned public funds
- Ongoing investigations to determine the true extent of the financial irregularities
The Chandigarh Bank Scandal highlights the need for strengthened internal controls and vigilance mechanisms within government institutions to prevent such incidents in the future.