E-Paper
₹116-crore Chandigarh MC funds fraud: Range Rover of key accused Wadhwa recovered
The scam, as per police, appears to have been executed in a manner where the cheques issued by the MC for creating fixed deposits were allegedly never recorded in the official banking system of the IDFC branch
Chandigarh Police have recovered a Range Rover allegedly belonging to prime suspect Vikram Wadhwa in connection with the ₹116-crore fraud involving funds of the Chandigarh Municipal Corporation (MC), parked in accounts at IDFC First Bank. However, Wadhwa, who investigators believe played a key role in the conspiracy, remains absconding.
The scam, as per police, appears to have been executed in a manner where the cheques issued by the MC for creating fixed deposits were allegedly never recorded in the official banking system of the IDFC branch. Instead, investigators suspect the funds were diverted to businesses linked to Wadhwa, making it appear on paper as though the payments had been made by the MC directly to these companies.
Sources in the investigation said the economic offences wing (EOW) has so far traced a money trail involving nearly 2,400 transactions, indicating extensive layering of funds. According to the preliminary probe, the accused allegedly routed the money through multiple purchases and payments to various businesses, including jewellery stores and other vendors.
Investigators said in several cases the recipients of the payments were unaware that the funds were linked to a fraud. For instance, jewellery worth crores was purchased from Sector 23 stores using the diverted money. It is learnt that Enforcement Directorate officials also conducted raids at these jewellery shops to uncover the extent of the fraud.
Police are now analysing these transfers to reconstruct the complete trail of funds and identify beneficiaries. A senior official said the money trail could extend beyond the 2,400 transactions identified so far, adding that investigators are also examining the possibility that another person may have been guiding or assisting Wadhwa in carrying out the alleged fraud.
The case surfaced after the MC attempted to transfer funds from Chandigarh Smart City Limited bank accounts to its own accounts. During the process, officials discovered that fixed deposit receipts (FDRs) worth about ₹116.84 crore issued at the Sector-32 branch of IDFC First Bank were allegedly fake, prompting the civic body to file a complaint with the police.
According to investigators, the suspected irregularities took place between March 2025 and March 2026 and were linked to financial transactions routed through the bank branch. Police have booked the then bank manager and others on charges of fraud and criminal conspiracy, while the probe is now focused on tracing the full money trail and locating Wadhwa.
₹75.16-cr irregularities in CREST accounts: FIR registered
After the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST) also flagged financial irregularities of around over ₹75.16 crore with IDFC bank on March 10, police on Thursday registered a case.
The FIR was registered at the Economic Offences police station, Sector 17, under Sections 316(5), 318(4), 336(3), 338, 340(2) and 61(2) of the Bharatiya Nyaya Sanhita (BNS) following a complaint filed by the project director of CREST on behalf of the organisation’s chief executive officer.
The case has been registered against Abhay Kumar, Seema Dhiman and Ribhav Rishi, employees of IDFC First Bank, along with other unidentified persons posted at the bank’s Sector-32 branch in Chandigarh.
Officials said the alleged irregularities came to light during a reconciliation of CREST’s financial records with the original bank statements provided by the branch. During the verification, 303 unauthorised withdrawals and deposits were identified in CREST’s bank accounts.
Preliminary scrutiny indicated a shortfall of ₹75,16,04,293 in the principal amount, prompting the organisation to approach the police.
