'First Safeguard Duped Homebuyers, Then Only Bail' : Supreme Court To Ex-MLA In Money Laundering Case

In a money laundering case pertaining to a housing project, the Supreme Court today asked former MLA Dharam Singh Chhoker to show cause as to why his bail plea should be entertained without his first safeguarding the interest of homebuyers who were allegedly duped."Unless the petitioner safeguards the interest of homebuyers, who have been ex-facie duped, let the petitioner show cause as to why this Court should entertain the prayer in this petition", the Court ordered.A bench of CJI Surya Kant and Justice Joymalya Bagchi was dealing with Chhoker's challenge to the Punjab and Haryana High Court order which denied him regular bail in the money laundering case. The High Court had observed that the allegations, nature of transactions, and material collected during the investigation did not justify Chhoker's release at that stage.The case pertains to an affordable group housing project undertaken by a company of the Mahira Group, controlled by Chhoker and his family, where it is alleged that large amounts collected from home buyers were diverted and misused. As per the allegations, Chhoker, along with the co-accused, siphoned off and laundered proceeds of crime amounting to Rs. 616 crores.Before the High Court, Chhoker contended that he was a senior citizen with deep roots in society, he had cooperated with the investigation, and that the trial was likely to take considerable time. The Enforcement Directorate opposed the plea citing the gravity of allegations, Chhoker's conduct during investigation, and the statutory requirements governing bail.After hearing the parties, the Court noted that the material placed on record indicated Chhoker'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.In addition, the Court noted that Chhoker repeatedly failed to comply with summons issued during the investigation, there were multiple instances of non-appearance, and non-bailable warrants had to be issued. It was further recorded 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.The Court also rejected an argument based on parity with a co-accused (who had been granted bail), noting that the subject order was under challenge and bail could not be claimed as a matter of parity. It further observed that Chhoker had not demonstrated compliance with the statutory requirements governing the grant of bail under PMLA.Aggrieved, Chhoker approached the Supreme Court.Case Title: DHARAM SINGH CHHOKER Versus DIRECTORATE OF ENFORCEMENT, SLP(Crl) No. 7383/2026Click Here To Read/Download Order

'First Safeguard Duped Homebuyers, Then Only Bail' : Supreme Court To Ex-MLA In Money Laundering Case

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'First Safeguard Duped Homebuyers, Then Only Bail' : Supreme Court To Ex-MLA In Money Laundering Case

Debby Jain

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