Chandigarh: Two CITCO employees suspended for involvement in ₹35-lakh fraud case

The corporation had conducted an inquiry into the matter and found that the original documents related to the bank guarantee were taken away from its office and replaced by a duplicate copy; the discrepancy was noticed during routine checking with the bank

Chandigarh Industrial and Tourism Development Corporation’s (CITCO’s) board of directors on Monday suspended two officials for allegedly conniving with a private security agency, Oscar Security and Fire Services, which withdrew ₹35 lakh deposited as the guarantee to a bank, and forging the document to defraud the state-run tourism body.

Chandigarh Industrial and Tourism Development Corporation’s (CITCO’s) board of directors on Monday suspended two officials for allegedly conniving with a private security agency, Oscar Security and Fire Services, which withdrew ₹35 lakh deposited as the guarantee to a bank, and forging the document to defraud the state-run tourism body. (Image for representational purpose)

The board, which met on Monday, also recommended registration of a first information report (FIR) in the matter for detailed investigation.

The suspended officials are manager (commercial) Anil Sharma and clerk Rikhi Ram.

An official privy to the matter said staffers of the private security agency allegedly withdrew ₹35-lakh bank guarantee by involving CITCO’s employees.

The corporation had conducted an inquiry into the matter and found that the original documents related to the bank guarantee were taken away from its office and replaced by a duplicate copy. The discrepancy was noticed during routine checking with the bank.

On the basis of the inquiry report, CITCO wrote to the bank concerned, requesting it to freeze the account of the security agency to recover the amount.