The Chandigarh Police on Wednesday arrested Nalini Malik, Chief Financial Officer (CFO) of the Smart City Project, in connection with the IDFC First Bank scam involving over Rs 116 crore of the Municipal Corporation (MC) Chandigarh.The arrest follows a case registered by the Economic Offences Wing (EOW) of Chandigarh Police, based on complaints from MC officials regarding fake fixed deposit receipts (FDRs) totaling Rs 116 crore.Police told the Chandigarh Court that accused IDFC First Bank manager Ribhav Rishi allegedly created shell firms in connivance with Nalini Malik, and Sukhwinder Singh, Project Director of Chandigarh Renewable Energy Science & Technology Promotion Society (CREST).The claim was made while seeking the remand of ex-IDFC officials Ribhav Rishi, Abhay Kumar, and Seema Dhiman in two FIRs registered on complaints by MC and CREST officers. Police had already arrested Sukhwinder Singh and Sahil Kukkar, an accountant with CREST.Nalini Malik was arrested on the basis of disclosure statements and other evidence procured during the investigation.Police told the court that during interrogation, Ribhav Rishi revealed that he worked as Branch Manager at IDFC First Bank, Sector 32, Chandigarh between 2023 and 2025. He allegedly opened bank accounts of the Municipal Corporation at his branch in connivance with the MC officials and created fake FDRs worth Rs 116 crore. He also allegedly set up shell firms in connivance with Nalini Malik and Sukhwinder Singh.Abhay Kumar, a relationship manager at the bank, is also allegedly involved in the case. The funds were allegedly invested in real estate with the help of accused Vikram Wadhwa. The fake FDRs were allegedly generated by Rishi using the bank’s computer systems and the amounts were transferred or paid to Malik, Sukhwinder Singh and his family members, and other officials through firm accounts and in cash.The scam in the Chandigarh Municipal Corporation came to light after MC officials approached IDFC First Bank, requesting the encashment of FDRs totaling over Rs 116 crore, which had been prepared from the funds shifted during the closure of Chandigarh Smart City Limited (CSCL).The investigation revealed suspicious debit and credit entries in the bank statements, and the FDRs shown as active assets in the records were found to be non-existent in IDFC First Bank statements. Following these revelations, the officials approached the police to register an FIR.