Chandigarh: In a major setback, former MLA Dharam Singh Chhoker has been denied bail by the Punjab and Haryana High Court in a money laundering case involving alleged financial irregularities exceeding ₹600 crore. The court, while rejecting the bail plea, observed that the seriousness of the allegations, the scale of financial misconduct, and the conduct of the accused do not justify granting relief.
The court noted that prima facie evidence indicates serious charges against the accused and that his behavior during the investigation reflected a lack of cooperation. Records showed that he had ignored multiple summons issued during the probe, compelling authorities to issue non-bailable warrants for his arrest.
₹600 Crore Housing Scam Leaves 1,500 Homebuyers in Distress
The case is linked to an affordable housing project in Sector 68, Gurugram, where around 1,500 homebuyers were allegedly duped of hundreds of crores. Buyers were promised possession of flats by 2021–22, but the project remained incomplete, leaving investors in distress.
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Investigations revealed that instead of utilizing the collected funds for construction, the money was allegedly diverted for other purposes. The funds were routed through multiple companies to obscure the financial trail. The enforcement agency informed the court that approximately ₹616 crore constituted “proceeds of crime” generated through this scheme, involving layered transactions such as fake loans and advances.
High Court Denies Bail Citing Serious Financial Misconduct
In its observations, the court stated that the available records clearly indicate misuse of funds collected from investors. The money meant for the housing project was allegedly spent on personal expenses, including purchase of properties, luxury vehicles, jewelry, and even family. Such conduct, the court remarked, not only falls under economic offences but also represents a serious breach of trust with the public.
During the hearing, it was also highlighted that the accused had failed to comply with more than 17 summons issued during the investigation. Eventually, he was arrested in May 2025 from a hotel in Delhi, where he was reportedly attempting to evade arrest. The court considered this conduct as a significant factor weighing against the grant of bail.
The bench also rejected the argument regarding prolonged custody. It observed that given the magnitude of the case, the scale of the alleged fraud, and the seriousness of the charges, the period of detention cannot be considered excessive, particularly when the trial is expected to commence soon.
Furthermore, the court emphasized that cases involving money laundering are governed by stringent legal provisions, and bail is not a matter of right but an exception. The accused, the court held, failed to satisfy the conditions required for grant of bail under the applicable law.
What Experts Say
Legal experts believe that the ruling reflects a strict judicial stance in cases involving large-scale financial frauds, especially those impacting ordinary citizens. Courts tend to exercise caution in granting relief where public money and trust are at stake.
The decision is also significant for thousands of homebuyers who invested their life savings in the project and are still awaiting possession of their homes. It is expected that the ruling will strengthen the ongoing investigation and help establish accountability in the case.
The matter will now proceed toward trial, where the full extent of the alleged financial irregularities and the role of the accused are likely to be examined in detail.
