3 min readChandigarhApr 4, 2026 08:57 AM IST
First published on: Apr 4, 2026 at 08:57 AM IST
The Chandigarh Police’s probe into the multi-crore Municipal Corporation (MC) and CREST scam has uncovered that shell companies, which were used to siphon off public funds, were allegedly floated in the names of a driver and his wife to mask the identities of the real beneficiaries.
According to disclosures in the alleged Rs 75-crore Chandigarh Renewal Energy and Science & Technology Promotion Society (CREST) scam, huge sums of public money were diverted through bank accounts opened in connivance with officials, routed via shell entities, and later invested in real estate to generate profits.
Three IDFC FIRST Bank officials — Rishav Rishi, Abhay Kumar, and Seema Dhiman — have allegedly told police during interrogation that CREST accounts were opened in their branch with the involvement of CREST officials. These accounts, as per Chandigarh Police remand papers, became conduits for siphoning funds through a network of shell firms.
Police probe revealed that entities such as Capco Fintech Services, R S Traders, and Swastik Desh Project were created as intermediaries to layer transactions.
In his disclosure, accused Vikram Wadhwa stated that government funds were first transferred into these companies accounts before being routed into his personal accounts.
The probe has further found that bank accounts of the Municipal Corporation (MC) were opened at an IDFC FIRST Bank branch in Sector 32 by then manager Rishav Rishi in alleged collusion with civic officials.
Fake fixed deposit receipts (FDRs) amounting to nearly Rs 116 crore were also created as part of the fraud.
Police investigations indicate that these shell firms were set up with the alleged involvement of Nalini Malik, former chief finance officer of the Smart City project, along with Sukhwinder Singh Abrol, CREST project director, and other MC officials.
Significantly, Capco Fintech Services was registered in the names of Bhupinder Singh and Sapna, who is the wife of Hemraj — a driver employed by Rishi. Another firm, R S Traders, was registered in the name of Hemraj. Meanwhile, Swastik Desh Project was floated in the name of Swati Singla, wife of accused Abhay Kumar, and her brother.
Police said these proxy-owned firms played a central role in diverting crores from municipal funds, which were subsequently invested in real estate ventures. The use of such fronts was aimed at concealing the financial trail and shielding the masterminds.
So far, seven accused — Vikram Wadhwa, Malik, Abrol, Rishav Rishi, Abhay Kumar, Seema Dhiman, and Sahil Kukkar — have been arrested. Of these, six have been remanded to judicial custody, while Malik remains in police custody.
The investigation is ongoing, with police officials indicating that more arrests and disclosures are likely as the financial trail is further unravelled.
Fake fixed deposit receipts (FDRs) amounting to nearly Rs 116 crore were also created as part of the fraud. (File) 
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