4 min readChandigarhUpdated: May 24, 2026 09:40 AM IST
Former chief financial officer (CFO) of Chandigarh Smart City Limited (CSCL), Nalini Malik, who is lodged in Model Jail, Burail, in connection with the alleged Rs 116.84-crore funds misappropriation case, has moved an application before the Special CBI Court seeking participation in the inquiry of the case.
Special CBI Judge Bhawna Jain has issued notice to the CBI for May 27, the date already fixed in the matter. The application, dated May 14, was forwarded to the court by the Deputy Superintendent, Model Jail, Chandigarh, through jail warder Vijay.
As per the court order, the application has been moved on behalf of accused-applicant Nalini Malik “seeking participation in the inquiry of the instant case” for “effective inquiry”. The case, earlier registered as FIR No. 2 dated March 9, is now being investigated by the CBI.
The court ordered that the application be registered as an interlocutory application. “Notice of the above said application be issued to the CBI for May 27, 2026, the date already fixed,” the court said.
Malik was arrested after her alleged role surfaced in the Smart City funds case. The matter pertains to alleged misappropriation of funds of CSCL, which were deposited with IDFC First Bank. The case was initially investigated by Chandigarh Police before being transferred to the CBI on the orders of the Ministry of Home Affairs.
According to the allegations in the case, funds lying in the bank accounts of Chandigarh Smart City Limited were to be transferred to the Municipal Corporation (MC) after the Smart City project ended. However, it has been alleged that bank officials, in conspiracy with others, diverted the funds through shell companies and invested the money in real estate.
The investigation had earlier alleged that while crores of rupees were to be transferred to the MC, Chandigarh, only Rs 81.20 was received from the Smart City account. The remaining amount was allegedly siphoned off by the accused persons.
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It has also been alleged that Malik, along with others, helped prepare fake fixed deposits to conceal the alleged diversion of funds. Several bank officials have also been arrested in the case.
The Chandigarh Police had earlier registered two FIRs in connection with alleged financial irregularities — one relating to Chandigarh Smart City Limited involving around Rs 116.84 crore, and another relating to Chandigarh Renewable Energy and Science and Technology Promotion Society involving around Rs 83 crore. Both matters were later transferred to the CBI.
Malik has also moved a bail application on medical grounds, which is listed for hearing on May 26. The CBI’s response to her application seeking participation in the inquiry will now be taken up on May 27.
Arrested on April 2,Malik’s name surfaced in the disclosure statement of former IDFC First Bank manager Ribhav Rishi. She is accused of conspiring with bank officials and municipal staff to create 11 fake FDRs worth Rs 116.84 crore in the name of the Municipal Commissioner, Chandigarh.
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Police allege that after the merger of CSCL with the MC on March 28, 2025, Malik was part of the team handling the transfer of records. During this period, she allegedly colluded with officials, including Anubhav Mishra, to manipulate financial documents.
It is further alleged that she received Rs 2 lakh from a shell company — Swastik Desh Project — and, during interrogation, admitted that over Rs 50 crore in cash was distributed among officials from the siphoned CSCL funds.
