Breaking News: CBI Secures Three-Day Custody of Former CSCL CFO in Rs 116-Crore Fund Scam
The Central Bureau of Investigation (CBI) has been granted three-day custody of Nalini Malik, the former Chief Financial Officer (CFO) of Smart City Company Limited (CSCL), for interrogation in the alleged Rs 116-crore Smart City fund scam.
Background of the Case
- The CBI took over the investigation on the directions of the Ministry of Home Affairs after the FIR was initially registered at the Economic Offences Wing police station in Chandigarh.
- The Ministry handed over the case to the CBI on the administration's recommendation.
CBI's Claim of Incriminating Material
The CBI claimed in its application that substantial incriminating material had surfaced against Nalini Malik during the investigation, revealing her active involvement in:
- Opening and operating undisclosed bank accounts of CSCL.
- Facilitating the unauthorized transfer and diversion of huge public funds to shell entities.
- Receiving pecuniary benefits or cash consideration therefrom.
CBI's Request for Custodial Interrogation
The CBI argued that the custodial interrogation of Nalini Malik is essential to further the investigation, unearth the larger conspiracy, and bring the other masterminds behind this conspiracy to justice.
Opposition from the Accused's Counsel
The counsel appearing for Nalini Malik opposed the remand, arguing that:
- She had already undergone four days of police custody with Chandigarh Police after her arrest on April 2.
- No further information could be extracted through custodial interrogation after the police interrogation.
- The CBI cannot seek a fresh round of police remand without demonstrating any tangible circumstances or new evidence.
- The accused is not in good health and has been hospitalized during her judicial custody.
Court's Decision
After hearing the arguments, the court allowed the CBI remand of the accused till May 28.
Key Dates:- April 2: Nalini Malik was arrested in connection with funds deposited in IDFC First Bank.
- May 28: The CBI remand of Nalini Malik is set to expire.