Sukhwinder Singh Abrol remanded to five-day police custody as Economic Offences Wing traces funds laundered through shell companies; key suspect Nalini Malik evades arrest in Karnal raid.
At a Glance
- ₹75 Cr — CREST Scam
- ₹116 Cr — MC FD Fraud
- 5 Days — Police Custody
The Economic Offences Wing of the Chandigarh Police has arrested Sukhwinder Singh Abrol, Project Director of the Renewable Energy and Science and Technology Promotion Society (CREST), in connection with an alleged ₹75 crore financial fraud that has sent shockwaves through the Union Territory’s administrative circles.
Abrol was produced before a Duty Magistrate on Sunday and remanded to police custody for five days, during which investigators hope to unravel the full extent of a meticulously engineered network of shell companies and fictitious bank accounts used to drain government funds.
The case was formally registered on March 12, 2026, following a complaint lodged by CREST’s Chief Executive Officer. Preliminary investigations suggest that crores of rupees were systematically transferred from government accounts into bogus enterprises, from where the money was then redirected into the personal accounts of the accused and his close associates.
“Government funds were laundered through a web of bogus companies and bank accounts — a network so meticulously orchestrated it raises suspicions of collusion at multiple levels.” — Police sources, Economic Offences Wing
Investigators are now painstakingly reconstructing the cash trail, examining financial records across multiple institutions to identify every beneficiary of the alleged fraud. Sources within the probe team indicate that the scheme bears the hallmarks of insider coordination, with funds distributed in cash to associates and their family members.
Senior Officials Named
The inquiry has drawn in the names of prominent officials beyond Abrol. N.P. Sharma, formerly Chief Engineer of the Municipal Corporation, and Nalini Malik, Accounts Officer for the Smart City Project, have both been identified as persons of interest. Investigators allege that the shell companies and fraudulent bank accounts were set up specifically under their instructions.
Suspect Flees Karnal Raid
In a dramatic development, the Economic Offences Wing mounted a raid on House No. 25 in Karnal in an attempt to apprehend Nalini Malik — but arrived to find she had already fled the premises. An XUV vehicle parked outside, believed to belong to Malik, was found at the location. Police suspect she may be sheltering at a relative’s residence and have intensified their search at multiple potential hideouts.
SIT Constituted for Dual Probe
Director General of Police Dr. Sagar Preet Hooda has constituted a Special Investigation Team (SIT) to simultaneously probe both the ₹75 crore CREST scam and the Municipal Corporation’s separate ₹116.84 crore fraudulent Fixed Deposit scandal. Two IPS officers have been inducted into the SIT to lend senior oversight to what is shaping up to be one of the most significant financial fraud investigations in Chandigarh’s recent history.
Police officials have indicated that the ongoing interrogation of Abrol during his custody period could yield further major revelations, and several additional arrests are anticipated as the investigation widens.
Tags: CREST Scam · Chandigarh Police · Economic Offences Wing · SIT · Smart City Project · Shell Companies
Case registered: March 12, 2026 | Complainant: CEO, CREST | Presiding DGP: Dr. Sagar Preet Hooda | This report is based on official police statements and investigative sources.
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