Rs 1,160 mn Ghost FDs Surface in Chandigarh Smart City Accounts

13 Mar 2026 CW Team

Company officials initiated the review after routine reconciliation showed discrepancies between ledger entries and bank confirmations, and banking records revealed instruments labelled as fixed deposits with no clear origin. The entries were described by investigators as ghost fixed deposits given their absence of originator information and supporting documentation. Auditors are focusing on sequence mismatches and missing authorisation stamps in transactional records.

The FIR names unidentified persons and entities as part of the complaint and seeks a forensic audit of the transactions, according to police sources. Officers said investigators will examine bank statements, electronic transfers and correspondence to determine whether the entries represent accounting errors, fraud or money diversion. Police intend to trace fund flows and to establish whether any public money was affected.

The revelation has prompted calls for tighter financial oversight of urban development projects and for clearer audit trails in government-linked entities, said municipal administrators. Officials said the case underscores the need for stronger internal controls and regular third party audits in organisations managing public projects. Stakeholders have been advised to await the outcome of the forensic examination before drawing conclusions.

Authorities expect the forensic audit to clarify accounting practices and to identify any control lapses. Depending on audit outcomes, administrative or legal measures may follow to recover funds and to strengthen governance. The case will be closely watched by other cities running smart city initiatives for its implications on fund management.

Chandigarh police have registered a first information report after suspected phantom fixed deposits worth Rs 1,160 million (mn) were found in bank accounts linked to Chandigarh Smart City Limited. The discovery followed an internal review of the company accounts that flagged multiple fixed deposit entries which could not be substantiated by corresponding bank receipts or beneficiary records. The findings prompted immediate escalation to law enforcement and corporate oversight teams. Company officials initiated the review after routine reconciliation showed discrepancies between ledger entries and bank confirmations, and banking records revealed instruments labelled as fixed deposits with no clear origin. The entries were described by investigators as ghost fixed deposits given their absence of originator information and supporting documentation. Auditors are focusing on sequence mismatches and missing authorisation stamps in transactional records. The FIR names unidentified persons and entities as part of the complaint and seeks a forensic audit of the transactions, according to police sources. Officers said investigators will examine bank statements, electronic transfers and correspondence to determine whether the entries represent accounting errors, fraud or money diversion. Police intend to trace fund flows and to establish whether any public money was affected. The revelation has prompted calls for tighter financial oversight of urban development projects and for clearer audit trails in government-linked entities, said municipal administrators. Officials said the case underscores the need for stronger internal controls and regular third party audits in organisations managing public projects. Stakeholders have been advised to await the outcome of the forensic examination before drawing conclusions. Authorities expect the forensic audit to clarify accounting practices and to identify any control lapses. Depending on audit outcomes, administrative or legal measures may follow to recover funds and to strengthen governance. The case will be closely watched by other cities running smart city initiatives for its implications on fund management.

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