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Multi-crore FDR scams | Chandigarh admn bars departments from assigning financial works to outsourced staff
The UT administration barred departments from assigning crucial financial work to contractual or outsourced staff after irregularities in CREST and MC funds emerged. Investigations point to a network involving outsourced personnel, bank officials, and private players, with forged FDRs and shell companies facilitating siphoning of funds. An April 27, 2026 order mandates regular employees handle sensitive financial tasks and warns of strict action for violations.
Why It Matters
This move represents a governance and accountability tightening in public finances following a high-profile fraud probe. It underscores efforts to close loopholes that allowed outsourcing of sensitive financial work and to deter future irregularities.
Timeline
3 Events
Investigation findings and details published
April 29, 2026
The UT Police's Economic Offences Wing investigations revealed a complex nexus involving officials, bank employees, and private players. Funds were siphoned off through shell companies and fake financial instruments, with Anubhav Mishra, the MC’s outsourced accountant, described as operationally critical; he procured blank fixed deposit receipts and helped forge FDRs and bank statements showing ₹116.84 crore deposited, while funds were siphoned. Sukhwinder Singh Abrol, project director hired on a contractual basis, oversaw CREST finances and had funds siphoned through shell accounts linked to him, his family and close associates. Nalini Malik’s mobile number was linked to a key bank account used in transactions, indicating operational control. Sahil Kukkar, head of accounts at CREST, is described as central to the siphoning process and reportedly received ₹10 lakh per transaction.
UT finance order restricting outsourced financial work
April 27, 2026
In the wake of irregularities observed in CREST and MC bank accounts, the finance department ordered that work of crucial, sensitive or financial nature be handled only by regular employees. It warned of strict action for violations and stated that responsibility for future irregularities would be fixed on the administrative secretary and the head of department concerned.
CSCL merger with MC (March 28, 2025)
March 28, 2025
Nalini Malik, former CFO of Chandigarh Smart City Ltd (CSCL), was part of the core finance team during the merger of CSCL with Chandigarh Municipal Corporation (MC) on March 28, 2025 – a phase described as involving large fund transfers. Her mobile number was linked to a key bank account used in transactions, indicating operational control.