AAP uncovers alleged Rs 100 crore fraud in Community Centre Bookings, calls for digital reforms, seeks CBI probe
Babushahi Bureau
Chandigarh, June 1, 2025 — The Aam Aadmi Party (Chandigarh Unit) has uncovered an alleged ₹100 crore scam involving fraudulent booking of community centres, and facilities meant to be free for economically weaker sections (EWS).
Instead, these centers were reportedly illicitly sold to poor families for sums ranging from ₹26,000 to ₹55,000 per booking.
The alleged scam operated through forged documents, fake councilor stamps, falsified signatures, and manipulation by middlemen posing as municipal employees.
Booking Process Under Law
Under existing municipal regulations, only families with an annual income below ₹1.5 lakhs qualify for free bookings by submitting valid documents such as ration cards.
The process requires verification first by the applicant’s residential ward councillor, then by the councillor of the ward where the community centre is located, followed by approval from the Municipal Commissioner.
Finally, eligible applicants pay only a nominal ₹120 facilitation fee, with no booking charges.
How the Scam Was Perpetrated
In the fraudulent cases uncovered, applicants’ forms bore stamps and signatures of councillors from wards unrelated to the applicants’ residence — violating procedure.
For example, an applicant from Sector 41 had a form stamped by the councillor of Sector 56, whose signature and stamp were later confirmed to be forged.
Middlemen exploited this loophole by charging exorbitant amounts, falsely claiming the actual fee was ₹72,000 and promising “discounts” through inside connections with Municipal Corporation officials.
Key Findings and Irregularities
- Forgery: Councillor signatures and stamps, including those of Councillor Sh. Manur, were allegedly forged. The councillor publicly denied any involvement.
- Extortion: Poor families were reportedly coerced into paying hefty bribes under threats of cancellation and public humiliation.
- Middlemen Impersonation: Individuals posing as municipal staff allegedly manipulated applicants with false claims.
- Luxury Misuse: Community centres intended for the poor were used for lavish weddings, featuring luxury cars like BMWs and Mercedes, booked under forged documents.
- Systemic Digital Failure: Despite government directives and existing e-office systems, the manual paperwork process continues, enabling corruption.
Estimated Financial Impact
AAP estimates that if just 70% of monthly free bookings were fraudulently processed, the Municipal Corporation has lost over ₹100 crores in the last five years due to this alleged scam — far exceeding losses from Chandigarh’s notorious parking lot scam.
AAP’s Demands
- CBI Inquiry: Immediate handover of the investigation to the Central Bureau of Investigation or Vigilance Bureau for a thorough probe.
- Full Digitalization: Shift the entire booking process to a digital platform to eliminate middlemen, ensure transparency, and protect public funds.
- Rollback of Rate Hikes: Reverse recent booking fee increases, as honest citizens should not suffer due to systemic corruption.
- Suspension and FIR: Immediate suspension and legal action against all involved Municipal Corporation employees.
- Comprehensive Audit: Conduct a full audit of all bookings over the past five years to identify and rectify financial irregularities.
- Compensation for Victims: Refund affected poor families and take strict action against exploiters.
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Vikrant A Tanwar, Media In-charge of AAP Chandigarh, said, “This scam is not only a massive financial betrayal but also a violation of the dignity of poor families who were supposed to be helped by these schemes. The Municipal Corporation’s reputation has been severely damaged, and urgent reforms are needed.”