Punjab & Haryana High Court Denies Bail To Former MLA Dharam Singh Chhoker In Money Laundering Case

The Punjab and Haryana High Court has denied bail to former MLA Dharam Singh Chhoker in a money laundering case. The Court observed that the allegations, nature of transactions, and material collected during the investigation did not justify release at this stage.Justice Tribhuvan Dahiya was hearing a petition seeking regular bail in a prosecution complaint filed by the Directorate of Enforcement in connection with the alleged commission of an offence under the Prevention of Money Laundering Act, arising out of predicate offences registered at Gurugram. The case pertained to an affordable group housing project undertaken by a company of the Mahira Group controlled by the petitioner and his family, wherein it was alleged that large amounts collected from home buyers were diverted and misused. It was alleged that the petitioner, along with the co-accused, siphoned off and laundered proceeds of crime amounting to Rs. 616 crore. The petitioner contended that he was a senior citizen, had deep roots in society, had cooperated with the investigation, and that the trial was likely to take considerable time, while the Enforcement Directorate opposed the plea, citing the gravity of allegations, the petitioner's conduct during the investigation, and the statutory requirements governing bail.The Court noted that the material placed on record indicated the petitioner's association with multiple companies involved in the project and that he had been actively involved in their affairs, including signing balance sheets. It also took note of the allegation that funds collected from home buyers were utilised for purposes other than the construction of the project.Significantly, the Court considered the petitioner's conduct and noted that he had repeatedly failed to comply with summons issued during the investigation, with multiple instances of non-appearance, and that non-bailable warrants had to be issued. It was further noted that when efforts were made to arrest him, he was not found at his residence on several occasions and was eventually apprehended after attempting to flee from a hotel in Delhi.On the contention regarding the delay in trial, the Court observed that the earlier order taking cognisance had been set aside and the matter was remanded, after which cognisance was again taken, and the trial was now set to commence. It held that the delay in commencement of trial could not be attributed to the prosecution alone and that the period of custody undergone by the petitioner since 04.05.2025 could not be considered substantial in the facts of the case.“… the period of custody can also not be termed substantial that would entitle the petitioner to bail dehors merits of the case which require compliance of the mandatory requirements under Section 45 PMLA as a precondition,” the Court observed. The Court also rejected the argument based on parity with a co-accused who had been granted bail, noting that such an order was under challenge and that bail cannot be claimed as a matter of parity. It further observed that the petitioner had not demonstrated compliance with the statutory requirements governing the grant of bail under the PMLA.Accordingly, the High Court dismissed the petition for regular bail.Case Title: Dharam Singh Chhoker vs. Directorate of Enforcement [CRM-M-73084-2025 (O&M)]Click Here To Read/Download Order

Punjab & Haryana High Court Denies Bail To Former MLA Dharam Singh Chhoker In Money Laundering Case

Saksham Vaishya

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Saksham Vaishya

Punjab & Haryana High Court Denies Bail To Former MLA Dharam Singh Chhoker In Money Laundering Case

Saksham Vaishya

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

Saksham Vaishya

This is a premium content
Available exclusively to
Our subscribers