Chandigarh Smart City CFO Nalini Malik Arrested in ₹116 Crore Fake FD Scam

New Delhi, April 3, 2026 – In a major breakthrough regarding one of the city’s most significant financial frauds, the Economic Offences Wing (EOW) of the Chandigarh Police has arrested Nalini Malik, the Chief Finance Officer (CFO) of Chandigarh Smart City Limited (CSCL). Malik stands accused of being a central figure in a sophisticated scam involving forged Fixed Deposit Receipts (FDRs) worth ₹116.84 crore.

The arrest, made on Thursday from her residence in Mohali, marks the first apprehension of a high-ranking government official in a case that has sent ripples through the Chandigarh Municipal Corporation (MC) and the administration.

The Modus Operandi: A Web of Deceit

The investigation suggests a deep-rooted conspiracy between government functionaries and banking officials. According to police reports, the fraud was meticulously orchestrated during the winding up of Chandigarh Smart City Limited in March 2025.

• Forged Documents: As CSCL merged with the Municipal Corporation, Malik was part of the transition team responsible for transferring financial records. During this shift, it is alleged that 11 fake FDRs were created to mask a massive shortfall in actual funds.
• The Discrepancy: Investigators informed the court that while ₹95.78 crore was supposed to be credited from CSCL to the MC’s account at IDFC First Bank, only ₹81.20 crore was actually found. The “missing” funds were allegedly covered up using fabricated bank documents.
• Shell Companies: The siphoned money was reportedly funneled into various shell companies, including names like CAPCO Fintech, RS Traders, and Swastik Desh Project. These entities were then used to route the money back to the accused or into real estate investments.

Key Revelations and Financial Payoffs

The Chandigarh Police have made startling claims regarding the scale of the personal gain involved:

1. Cash Distribution: During the remand hearing, investigators alleged that Malik and other involved officials received over ₹50 crore in cash from the embezzled funds.
2. Digital Footprint: A sum of ₹2 lakh was reportedly traced directly to Malik’s personal YES Bank account from a shell firm. Furthermore, her mobile number was found registered to a key IDFC bank account used in the transactions, suggesting direct oversight of the fraudulent movements.
3. Real Estate Investments: The diverted public money was allegedly invested in the property market through a local realtor, who has also been taken into custody.

Widening Investigation

Nalini Malik has been remanded to four-day police custody for further interrogation. The EOW aims to use this time to recover the siphoned funds and identify other senior officials who may have been complicit in the scheme.

The scam is closely linked to a separate ₹83-crore fraud involving the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST). Several individuals have already been arrested in connection with these overlapping cases, including:

• Ribhav Rishi: Former Branch Manager at IDFC First Bank (Sector 32).
• Sukhwinder Abrol: Project Director of CREST.
• Vikram Wadhwa: A Chandigarh-based realtor.

Official Response

The fraud came to light when Municipal Corporation officials attempted to encash the FDs, only to be informed by the bank that the receipts did not exist in their official records. The Chandigarh Administration has signaled a “zero-tolerance” policy, with more arrests of departmental staff and bank employees expected as the money trail is fully unraveled.

For now, the arrest of the CFO serves as a stark reminder of the vulnerabilities in urban development funding and the need for more rigorous auditing in “Smart City” projects across the country.