CBI Intensifies Probe Into ₹657 Crore Chandigarh Smart City, MC Fund Fraud

The Central Bureau of Investigation (CBI) has conducted searches at five locations in Chandigarh and Ludhiana as part of its probe into the alleged misappropriation of ₹657 crore from funds belonging to the Municipal Corporation Chandigarh and Chandigarh Smart City Ltd. (CSCL), officials said on Thursday.

The searches were carried out at the residential premises and business establishments of suspected beneficiaries of the allegedly defrauded funds. The premises of Anubhav Mishra, a public servant associated with CSCL, and private entities linked to the investigation were also searched.

According to the CBI, the operation led to the recovery of several incriminating documents and electronic evidence. Investigators seized storage devices, digital signatures, property-related documents, financial records, electronic devices and other material considered relevant to the alleged financial irregularities.

The case relates to suspected fraudulent transactions at the Sector 32 branch of IDFC First Bank in Chandigarh, where government funds were allegedly siphoned off using forged or non-existent fixed deposits and fraudulent debit transactions. The money was subsequently routed through suspected shell entities, according to the investigating agency. The alleged scam involves funds belonging to both Haryana and Chandigarh. The CBI said illegal transactions caused a loss of approximately ₹504 crore to the Haryana government, while the alleged loss linked to Chandigarh amounted to ₹153 crore, taking the total suspected loss to ₹657 crore.

The CBI had taken over the investigation from the State Vigilance and Anti-Corruption Bureau, Haryana, following a request from the state government. The agency has since expanded its probe to trace the flow of funds, identify the beneficiaries and examine the role of individuals and private entities allegedly involved in the transactions. The latest searches are expected to help investigators gather further evidence related to the movement of the allegedly misappropriated funds and establish links between the suspected beneficiaries and the fraudulent transactions.

The CBI has already filed charge sheets in several cases connected with the alleged fraud and arrested three senior IAS officers in connection with the investigation. The latest searches indicate that the probe into the alleged ₹657 crore scam remains ongoing.