[PMLA] 'No Possibility Of Trial Being Concluded In Reasonable Time': Punjab & Haryana HC Grants Bail To Builder Accused Of Cheating Home Buyers

The Punjab & Haryana High Court has granted bail to a director of a company accused under the Prevention of Money Laundering Act (PMLA) for fabricating bank guarantees as well as cheating 1500 prospective home buyers.It was alleged that SIkander Singh failed to complete the projects as per time schedule and did not deliver the flats as per agreed terms & conditions, thus, he misappropriated the funds and cheated the home buyers to the tune of about Rs.363 Crore.Justice Mahabir Singh Sindhu said, "There is no quarrel that petitioner was arrested on 30.04.2024; thus, he is in custody for the last 09 months; except from taking cognizance, there is no other progress of the trial and the charges are yet to be considered by learned Special Court."The Court further noted that "There are 32 prosecution witnesses cited by the E.D in their complaint and as such, it would be very difficult to say that trial is likely to be completed in the near future, rather there seems to be “no possibility” that trial would be concluded in a reasonable time."The judge highlighted that out of a total of 1500 home buyers, none has raised any complaint against the petitioner.Justice Sindhu also pointed out that, "in case of delay in completion of project(s) by any Promoter/Director and/or non- delivery of possession to the home buyers within stipulated period as per the Agreement, there is specific remedy for claiming interest, penalty and/or compensation etc. under Section 31 of the Real Estate (Regulation & Development) Act, 2016, but there is nothing on record to suggest that such a course has been followed by any aggrieved person."Hence, the Court opined that the bar of Section 45 of PMLA will not be applicable in the present case.The Court was hearing a second plea to release Sikandar Singh on regular bail, who was booked under Sections 3 & 4 of the PMLA.Senior counsel for Singh contended that from December 2021 to October 2023, he was summoned and in pursuance thereof, he appeared before E.D. on almost 37 occasions.Despite the petitioner's full co-operation, E.D. with mala fide intention obtained open-ended warrants against him as well as co-accused i.e. father and brother, he added.It was further submitted that out of a total of 1500 flats, almost 1000 were constructed and construction of 800 flats is completed up to 95%; whereas 200 flats have been completed up to 75-80%.Considering the submissions, the Court said that further incarceration of the petitioner shall not serve any useful purpose; rather it would amount to punishing him before guilt is proved.In the light of the above, the plea was allowed. Mr. Vikram Chaudhri, Sr. Advocate (through V.C) with Mr. Jatin Sehgal, Advocate (through V.C),Mr. Raymon Singh, Advocate (through V.C) and Ms. Hargun Sandhu, Advocate for the petitioner.Mr. Zoheb Hossain, Special Counsel (through V.C) with Mr. Lokesh Narang, Senior Panel Counsel, Ms. Subhleen Dhariwal, Advocate,Mr. Suradshish Vats, Advocate for the respondent.Title: Sikandar Singh v. Directorate of EnforcementClick here to read/download the order

[PMLA] 'No Possibility Of Trial Being Concluded In Reasonable Time': Punjab & Haryana HC Grants Bail To Builder Accused Of Cheating Home Buyers

Aiman J. Chishti

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