The Supreme Court of India on Tuesday, 28 April 2026, in a money laundering case linked to a housing project (Mahira Group housing), directed former MLA Dharam Singh Chhoker to explain the grounds for bail in light of the unresolved losses suffered by the buyer. The Court observed that unless such interests are safeguarded, the petitioner must justify why his plea deserves to be entertained.
A Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi was hearing Chhoker’s challenge to an order of the Punjab and Haryana High Court, which had denied him regular bail. The High Court had held that the seriousness of the allegations, the nature of the transactions, and the material gathered during investigation did not warrant his release at that stage.
The case concerns an affordable housing project undertaken by a company of the Mahira Group, allegedly controlled by Chhoker and his family. Investigators claim that substantial funds collected from homebuyers were diverted and misused, with allegations that Chhoker and others siphoned off and laundered proceeds of crime amounting to ₹616 crore.
Before the High Court, Chhoker argued that he is a senior citizen with established social roots, had cooperated with the investigation, and that the trial would take considerable time. The Enforcement Directorate opposed the plea, citing the gravity of the allegations, his conduct during the probe, and the statutory conditions governing bail under the Prevention of Money Laundering Act (PMLA).
The High Court noted material suggesting Chhoker’s association with multiple companies involved in the project and his active role in their operations, including signing balance sheets. It also took into account allegations that funds collected from homebuyers were used for purposes unrelated to the project.
Additionally, the Court recorded repeated non-compliance with investigation summons, multiple instances of absence, and the issuance of non-bailable warrants. It further noted that Chhoker was not found at his residence during attempts to arrest him and was eventually apprehended after allegedly trying to flee from a hotel in Delhi.
The High Court also rejected his claim for parity with a co-accused who had been granted bail, observing that the order granting such bail was itself under challenge and could not be relied upon as a matter of right. It further found that Chhoker had failed to satisfy the statutory requirements for bail under the PMLA.
Dissatisfied with the High Court’s ruling, Chhoker has moved the Supreme Court, where the case is currently pending.
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