A CBI court in Chandigarh has granted CBI three-day custody of Nalini Malik, former chief financial officer (CFO) of Smart City Company Limited (CSCL), for interrogation in the alleged Rs 116-crore Smart City fund scam. Malik was earlier arrested in connection with funds deposited in IDFC First Bank.
CBI sought her remand after taking over the investigation on the directions of the Ministry of Home Affairs. Initially, the FIR in the case was registered at the Economic Offences Wing police station, Sector 17, Chandigarh. However, on the administration’s recommendation, the ministry handed over the case to CBI.
In its application, CBI claimed that during the investigation, substantial incriminating material had surfaced against the accused, Nalini Malik, the then CFO of CSCL. The material allegedly reveals her active involvement in opening and operating undisclosed bank accounts of CSCL, facilitating the unauthorised transfer and diversion of huge public funds to shell entities, and receiving pecuniary benefits or cash consideration therefrom.
CBI said that the custodial interrogation of the accused, Nalini Malik, is essential to further the investigation, unearth the larger conspiracy, and bring the other masterminds behind this conspiracy to justice.
Counsel appearing for the accused, Nalini Malik, while opposing the remand, argued that she had already undergone four days of police custody with Chandigarh Police immediately after her arrest on April 2. They further argued that after interrogation by the police, nothing further was left to be asked or extracted through custodial interrogation.
They contended that CBI, as the successor agency investigating the same transaction, cannot now be permitted to seek a fresh round of police remand after more than 45 days without demonstrating any tangible circumstance or new evidence.
They also argued that the accused, Nalini Malik, is not in good health and has been hospitalised during her judicial custody.
After hearing the arguments, the court allowed CBI remand of the accused till May 28.
