The Supreme Court has stayed a Punjab and Haryana High Court order restraining judicial officers in Rohtak Sessions Division from entertaining bail applications in a case involving an alleged large-scale real estate investment scam in which investors were allegedly cheated of crores of rupees.

A bench of Justice JB Pardiwala and Justice K Vinod Chandran passed the order on October 27 while hearing a special leave petition filed challenging the High Court's September 30 order.

The Court issued notice, returnable in four weeks, and stayed the operation of the impugned order in the meantime.

“Issue notice, returnable in four weeks. Dasti service, in addition, is permitted. In the meantime, there shall be stay of operation of the impugned order dated 30.09.2026 passed by the High Court of Punjab & Haryana at Chandigarh in CRM M-42815/2026”, the Court ordered.

The High Court had passed the order while hearing an anticipatory bail petition filed by Subhash Gupta, a partner of Gupta Property Developers, Shivji, in connection with an FIR under Sections 420, 120-B and 506 of the IPC, corresponding to Sections 318(4), 61 and 351(2) of the Bharatiya Nyaya Sanhita.

In its order, the High Court had expressed serious concern over the investigation, observing that attempts had been made to shield the main accused, who are accused of cheating numerous investors of crores of rupees by collecting money for real estate projects without delivering possession or returning the invested amounts.

The High Court had noted that, despite earlier directions, the investigation had not proceeded properly. It noted that a Special Investigation Team headed by Rohtak Superintendent of Police Gaurav Rajpurohit was investigating the case and that Kuldeep Kumar Tahlan, a director of DHL Infratech Private Limited, and Gurvinder Jeet Singh, an employee of Gupta Property Developers, had been arrested.

The Court noted that Kuldeep Kumar Tahlan had been granted bail, whereas Gurvinder Jeet Singh's bail plea had been dismissed by the courts at Rohtak. It further observed that three directors of DHL Infratech and its authorised signatory, Sidhant, had been granted interim anticipatory bail by the same presiding officer who had dismissed the bail plea of the petitioner before the High Court. The High Court was also informed that these four accused were allegedly involved in other scams.

The High Court observed that real estate developers often collect crores of rupees from homebuyers by promising timely possession, despite allegedly knowing that the projects could not be completed as represented, and subsequently siphon off the invested amounts. The Court remarked that such conduct demonstrated a repeated pattern of fraudulent transactions, which are often presented as isolated contractual disputes.

“Even such systematic frauds are projected as isolated disputes arising out of contractual relationship, but when the Courts examine such disputes, it is found that such disputes form part of larger conspiracy to cheat the innocent buyers of their earning of whole life,” the High Court observed.

The Court further noted that the Supreme Court and the High Court had repeatedly expressed displeasure over investigations allegedly conducted to benefit builders and developers involved in large-scale economic frauds affecting numerous investors. It said that despite its earlier directions to the Inspector General of Police to examine the investigation and take strict action, the investigating officer had apparently been trying to help the accused and the investigation had not proceeded properly.

Observing that police officials in Rohtak appeared reluctant to act against the real estate promoters and developers, the High Court directed the Haryana government to appoint a senior IPS officer to investigate the alleged scam and submit a status report before the next hearing.

The Supreme Court on October 27 stayed the operation of the High Court's September 30 order pending further proceedings.