Chandigarh: CBI to probe fraud linked to MC, CREST accounts

The case revolves around the ₹116.84-crore fake fixed deposit receipt (FDR) scam in the MC, along with a ₹75-crore-financial irregularity linked to CREST.

The Central Bureau of Investigation (CBI) is set to take over the probe into the multi-crore irregularities linked to accounts of the Municipal Corporation (MC) and the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST) maintained with IDFC First Bank, officials said.

A senior CBI official, wishing not to be named, confirmed that the case has been referred by the administration and that further action will be taken soon. (HT Photo)

The central agency is already probing a similar case involving the embezzlement of ₹590 crore from the Haryana government’s accounts maintained with IDFC First Bank, Chandigarh.

Officials said the move to hand over the probe to the CBI comes amid the expanding scope of the case, with the investigation by the Chandigarh Police’s economic offences wing (EOW) uncovering a complex nexus involving senior officials, contractual staff, bank officials, auditors and private players. The UT Administration had recommended a central probe on April 15, citing the scale of the fraud, inter-state financial linkages and the involvement of multiple agencies.

The case revolves around the ₹116.84-crore fake fixed deposit receipt (FDR) scam in the MC, along with a ₹75-crore-financial irregularity linked to CREST. Investigators have so far arrested at least 10 key accused, while one of the key accused—an outsourced accountant in MC—remains absconding.

A senior CBI official, wishing not to be named, confirmed that the case has been referred by the administration and that further action will be taken soon. The agency is expected to re-register the case and take custody of all documents, digital evidence and accused persons as part of the transition.