Yes. Chemotherapy induces mutations and therefore it is genotoxic. This is from an experimental point of view. However, in cancer treatment it is highly unusual that chemotherapy induces a second tumor.
Chemotherapy has been associated with cancer. The risk is high and it may occur several years later. The most common cancer that is seen in such a situation is leukemia. The chemo drugs that could pose such a risk are alkylating agents, platinum-based drugs and anthracycline topoisomerase II inhibitors.
The risk of getting cancer also depends on drug dosage and treatment duration. The risk is more when the dose is high and treatment is for a longer duration.
Dear Asaad Hamid Ismail thank you for your interesting and important technical question. Yes, certain kinds of cancer have been related to chemotherapy (and also radiotherapy). For more information about this, please have a look at the following useful article entitled:
It may cure and cause cancer. I still make mutations but it does not mean for the better. Mutations are normally different to what they are now. (any change can be a mutation)