A special CBI court on Thursday rejected the second regular bail plea of Nalini Malik, former chief financial officer (CFO) of Chandigarh Smart City Limited (CSCL), in the alleged ₹78 crore government funds diversion case.
The case pertains to the alleged diversion of funds from CSCL and Chandigarh municipal corporation accounts maintained with IDFC First Bank. The irregularities came to light during the transfer of CSCL’s assets and financial records to the municipal corporation following the closure of the Smart City project in March 2025. During the process, MCC officials discovered that fixed deposits worth approximately ₹117 crore reflected in the handed-over records did not exist in the bank’s original records.
Special judge Bhawna Jain observed that the material collected during the investigation, including WhatsApp communications, banking records, SMS alerts and financial transactions, prima facie suggested Malik’s involvement in the alleged conspiracy to divert public funds through fake bank accounts and intermediary entities.
According to the CBI, Malik allegedly received ₹50 lakh in cash at her residence in Aquila Taj Tower, Sector 104, Mohali, on December 8, 2025. The court also took note of allegations that interior renovation work worth approximately ₹45 lakh was carried out at her residence at the instance of co-accused Ribhav Rishi, the then IDFC First Bank branch manager. The CBI alleged that no corresponding payment by Malik could be established during the investigation.
The prosecution further alleged that ₹2 lakh was credited to her personal bank account from Swastik Desh Projects in October 2025. Malik had claimed that the amount was consultancy fees, but the court noted that she had not produced supporting evidence to establish that she had rendered such services.
{{/usCountry}}The prosecution further alleged that ₹2 lakh was credited to her personal bank account from Swastik Desh Projects in October 2025. Malik had claimed that the amount was consultancy fees, but the court noted that she had not produced supporting evidence to establish that she had rendered such services.
{{/usCountry}}The CBI also cited WhatsApp conversations between Malik and co-accused Abhay Kumar, alleging that manipulated bank statements were shared with her after genuine statements showing unauthorised transactions. The court observed that these communications prima facie suggested her knowledge of the alleged financial irregularities.
Opposing the bail plea, the CBI argued that Malik, who was functioning as CFO of CSCL and an authorised signatory of its bank accounts, was allegedly aware of the creation and operation of a fake account in the name of the company. It further submitted that investigation into the money trail, identification of beneficiaries and the role of other persons was still underway.
Seeking bail, Malik’s counsel argued that she had handed over charge of CSCL to MCC on March 20, 2025, and could not be held responsible for subsequent transactions. They claimed that she had been made a scapegoat to protect senior officials and bank functionaries. The defence also disputed the allegations relating to the cash delivery and renovation expenses, claiming that the latter had been paid for by her husband.
Her counsel further pointed out that she had been in custody since April 2, 2026, and that the electronic and documentary evidence had already been seized by the investigating agency.
The court noted that her first regular bail application had been dismissed on June 3, 2026, and there had been no substantial change in circumstances since then. Her separate petition seeking interim bail on medical grounds is pending before the Punjab and Haryana High Court.
Dismissing the application, the court held that Malik was not entitled to the concession of regular bail at this stage.