Chandigarh Scam Exposes How Bank Staff Used Shell Firms to Siphon Public Funds

A major financial fraud involving the Municipal Corporation (MC) and the Chandigarh Renewal Energy and Science & Technology Promotion Society (CREST) has taken a new turn, with investigators uncovering the use of shell companies allegedly floated in the names of a driver and his wife to siphon off public funds. The multi-crore scam, currently under investigation by Chandigarh Police, highlights a complex network of financial manipulation designed to conceal the identities of the actual beneficiaries.

According to findings from the ongoing probe, entities such as Capco Fintech Services, R S Traders, and Swastik Desh Project were created as intermediary firms to layer transactions and divert funds. These shell companies reportedly played a crucial role in masking the movement of money, making it difficult for authorities to trace the ultimate recipients of the misappropriated funds.

The case pertains to an alleged ₹75-crore scam linked to CREST, in which substantial amounts of public money were diverted through bank accounts opened with the alleged involvement of officials. Investigators revealed that the funds were routed through multiple accounts linked to these shell firms before being invested in real estate ventures, indicating a deliberate attempt to generate profits while concealing the origins of the money.

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Further deepening the case, police have stated that fake fixed deposit receipts (FDRs) worth nearly ₹116 crore were also created as part of the fraudulent operations. These forged financial instruments were allegedly used to manipulate records and maintain the appearance of legitimate transactions within the banking system.

In connection with the case, three officials from IDFC FIRST Bank — Rishav Rishi, Abhay Kumar, and Seema Dhiman — have been questioned by authorities. During interrogation, the officials reportedly disclosed that CREST accounts were opened at their branch with the involvement of CREST personnel, and these accounts were later used as conduits for transferring funds through the network of shell entities.

The investigation remains ongoing, with authorities working to identify all individuals involved and trace the full extent of the financial trail. Officials have indicated that further arrests and disclosures may follow as forensic audits and interrogations continue, shedding more light on one of the region’s significant public fund misappropriation cases.

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