Fake fixed deposit receipts (FDRs) amounting to nearly Rs 116 crore were also created as part of the fraud. (File)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.Story continues below this adPolice 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.Story continues below this adThe investigation is ongoing, with police officials indicating that more arrests and disclosures are likely as the financial trail is further unravelled.Jagpreet Singh Sandhu is a Senior Correspondent at The Indian Express, based in Chandigarh. He is a veteran reporter with over a decade of experience, specializing in legal, crime, and environmental reporting across the tri-city area (Chandigarh, Mohali, and Panchkula). Professional Background Core Beat: He primarily covers the Punjab and Haryana High Court, District Courts, CBI Courts, and Consumer Commissions. His legal reporting is known for breaking down complex judgments and tracking long-standing criminal cases. Environmental Reporting: Jagpreet has become a key voice in reporting on the deteriorating air quality and weather patterns in the Punjab-Haryana region. Crime & Technology: He frequently reports on cybercrime, digital arrest scams, and the intersection of technology and law enforcement, such as the development of citizen-centric policing apps. Recent Notable Articles (Late 2025) His late 2025 coverage has focused on significant judicial verdicts, major financial scams, and public health concerns: 1. Legal & CBI Court Verdicts "12 years on, CBI court acquits Haryana judge, parents in wife’s death case" (Dec 17, 2025): Detailed coverage of the acquittal of a judicial officer in a high-profile dowry death case from 2013. "‘Wicked & evil mind’: Court gives man 30-year term for kidnapping, sexually assaulting 8-year-old" (Dec 16, 2025): A report on a stern judgment from a Chandigarh district court in a POCSO case. "Man acquitted in rape case after victim found ‘very happy’ in wedding reception" (Dec 9, 2025): Covering a unique legal observation regarding consensual relationships and age verification. 2. Investigative & Scams "CBI registers FIR in Rs 1.14-cr Patient Welfare Grant scam at PGIMER" (Dec 19, 2025): An exposé on how funds meant for poor patients were siphoned off through forged documents and a photocopy shop inside the PGIMER campus. "Month-long torture, Rs 85 lakh transfers: How ‘Innocence Certificate’ led to a ‘digital arrest’ of an elderly couple" (Dec 12, 2025): Detailing a sophisticated cyber fraud targeting senior citizens in Chandigarh. 3. Environment & Public Safety "Panchkula air turns ‘very poor’, fourth worst in country" (Dec 22, 2025): Reporting on the sudden spike in pollution levels in Panchkula compared to neighbouring cities. "Soon, you can snap that overspeeding car, and report to Chandigarh Police" (Dec 16, 2025): Breaking news on a new mobile application being developed to allow citizens to report traffic violations via geo-tagged photos. 4. Gangster Culture & Crime "City Beautiful in the crosshairs of gangsters" (Dec 14, 2025): A feature analysis of how Chandigarh has increasingly become a staging ground for extortion and rivalries between gangster modules. "Shooters wanted for Parry murder held by Delhi Police Special Cell" (Dec 18, 2025): Following the developments in a high-profile murder case in Chandigarh’s Sector 26. Signature Style Jagpreet is recognized for his tenacious follow-up on cold cases and his ability to report on courtroom drama with a focus on victim rights. His work often highlights administrative lapses, whether in the handling of patient welfare funds or the enforcement of environmental standards. ... Read MoreStay updated with the latest - Click here to follow us on Instagram© The Indian Express Pvt LtdTags:Chandigarh Police