Chandigarh, Nov. 13 -- 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 Rs.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 Rs.117 crore reflected in the handed-over records did not exist in the bank's original re...