Nalini Malik, the former Chief Financial Officer (CFO) arrested in connection with the ₹116.84 crore scam involving Smart City Limited, now wishes to turn approver (government witness). To this end, Nalini has sent a petition to the CBI Court from Burail Jail through a prison warder. In her petition, she has stated that if she is granted approver status, she can provide crucial information pertinent to this scam.
This implies that Nalini is now prepared to expose the secrets of several high-ranking officials within Smart City Limited and the Municipal Corporation. However, the CBI Court has sought a response from the investigative agency regarding this petition. Consequently, it remains to be seen whether the CBI will agree to allow Nalini Malik to turn approver. This case, involving financial irregularities amounting to ₹116.84 crore within Smart City Limited and the Municipal Corporation, first came to light approximately two months ago. Following the revelation, the Chandigarh Police initiated an investigation and registered FIRs against several individuals.
The involvement of former CFO Nalini Malik also surfaced during the probe, leading to her arrest by the police on April 2nd. She has remained in judicial custody ever since. She has now also filed a bail application on medical grounds, which is scheduled for a hearing on May 26th. Apart from Nalini, several bank employees have also been arrested in connection with this case. Although the names of several senior officials within the Municipal Corporation emerged during the investigation, the Chandigarh Police were unable to apprehend them. The investigation into the case has now been taken over by the CBI; as a result, the legal troubles for these officials are likely to escalate.
**Scam Perpetrated in Collusion with the Bank**
According to the case details, a significant portion of Smart City Limited’s funds was deposited with IDFC First Bank. Upon the completion of the Smart City project, the funds held in the bank account were supposed to be transferred to the Municipal Corporation; however, bank officials allegedly siphoned off these funds and invested them in the real estate sector through shell companies.
According to the investigation findings, while crores of rupees were supposed to be transferred into the Municipal Corporation Chandigarh’s account, the Corporation ultimately received a mere ₹81.20 from Smart City Limited. The accused individuals divided the remaining funds among themselves. It is alleged that Nalini Malik, in collusion with other officials and IDFC Bank employees, created 11 fraudulent Fixed Deposits (FDs) to avoid arousing any suspicion.
Subsequently, they established shell companies and invested the funds held in these FDs. Furthermore, to execute this scam, bank officials channeled crores of rupees to several high-ranking officials within the Smart City administration.
**Case Transferred from Police to CBI**
Two months ago, the Chandigarh Police uncovered a scam involving ₹116.84 crore within the Smart City project and approximately ₹83 crore within the Chandigarh Renewable Energy and Science & Technology Promotion Society (CREST). A substantial portion of the funds belonging to the Smart City project and CREST was held as Fixed Deposits (FDs) at IDFC Bank.
Through the collusion of officials from the bank, the Municipal Corporation, and CREST, these funds were diverted and invested in the real estate sector via shell companies. In exchange for facilitating this scheme, the bank employees paid hefty bribes to the government officials involved.
The Chandigarh Police had registered two separate FIRs in connection with this case, which were subsequently transferred to the CBI following orders from the Ministry of Home Affairs. The CBI is now conducting the investigation into this matter.
