The Punjab and Haryana High Court has rejected the regular bail plea of Jarnail Singh Bajwa, Managing Director of Bajwa Developers Limited, in a money laundering case involving alleged diversion of homebuyer funds. The case concerns around Rs 662.49 crore allegedly raised as advances for real estate projects. The Enforcement Directorate has alleged that funds were diverted through related parties, unsecured loans and personal purchases. The court held that the material on record did not satisfy the stringent bail conditions under the Prevention of Money Laundering Act.
Punjab and Haryana High Court Denies Bail to Bajwa Developers Chief in Rs 662 Crore Money Laundering Case
The Punjab and Haryana High Court refused the bail plea of Bajwa Developers Limited Managing Director Jarnail Singh Bajwa on the ground of serious allegations of diversion of funds and money laundering in respect of homebuyer investments.
The Punjab and Haryana High Court has rejected an application for regular bail of Jarnail Singh Bajwa, Managing Director of Bajwa Developers Limited (BDL), in a money laundering case related to alleged diversion of funds collected from homebuyers. The case is related to approximately Rs 662.49 crore allegedly received as advances for real estate projects.
“The material placed before the court does not satisfy the stringent conditions for granting bail under the Prevention of Money Laundering Act (PMLA),” said Justice Manisha Batra while dismissing the bail plea. The court noted that the allegations and evidence on record were prima facie grounds for continuation of proceedings.
The case follows a number of customer complaints of irregularities in property transactions, court records show. Authorities said 41 First Information Reports (FIRs) were registered against Bajwa on allegations of cheating, multiple sales of plots, manipulation of plot numbers and allotments without requisite statutory approvals.
The allegations also state that plots, flats and commercial properties were offered to customers with assurances with regard to possession timelines and ownership clarity. Investigators say that large sums were raised from buyers before the projects had been finished.
Enforcement Directorate Investigation and Alleged Fund Diversion
An Enforcement Case Information Report (ECIR) was registered by the Enforcement Directorate (ED) on the basis of the police cases on March 31, 2022. “The agency launched an investigation to track the movement of the funds and determine the alleged proceeds of crime.
Additional Solicitor General Satya Pal Jain, who appeared for the ED in the course of the hearing, said that the evidence collected during the probe included statements, freezing of bank accounts and recovery of luxury vehicles. The material suggested that Bajwa was the controlling authority behind BDL’s operations, the agency said.
A significant portion of the money raised from homebuyers was allegedly misused through related parties, unsecured loans and personal purchases instead of being deployed for the real estate projects for which the money was raised.
Court documents cited that money was used to buy land plots, luxury cars, make unsecured loans, and settle liabilities of companies owned by family members. However, such allegations will be subject to the judicial process and have not been proven in court.
High Court Examines PMLA Bail Conditions
Justice Manisha Batra, while considering the application, looked into the statutory conditions regarding grant of bail under the Prevention of Money Laundering Act. The law requires that the courts must be satisfied that there are reasonable grounds to believe that an accused is not guilty and is unlikely to commit further offences while on bail.
The court noted that the material available did not support such a conclusion at the present stage. The allegations prima facie constitute a case to believe that the petitioner has committed offences in relation to the provisions taken cognisance of by the investigating agencies, Justice Batra said.
The ED also said that during the investigation, discrepancies were found in the financial records and it was alleged that there was a withholding of authentic ledger data which pointed toward attempts to obfuscate the probe and cover up the money trail. The court took into consideration these submissions within the framework of the bail application.
The judgment additionally referenced Section 24 of the PMLA, which creates a statutory presumption regarding proceeds of crime. The court noted that no material had been presented at this stage capable of rebutting that presumption.
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What the Decision Means Going Forward
Finally, the High Court dismissed the petition, observing that the observations made by the court cannot be considered as findings on the final merits of the matter. “The criminal proceedings and investigation will go on no matter what the bail decision is.”
The case underscores rising regulatory scrutiny over alleged financial irregularities in India’s real estate industry, especially those involving homebuyer deposits. As the investigation progresses, further judicial proceedings are expected to be instituted to confirm the veracity of the allegations and the responsibility of the accused.
The court's directive is a major development in the ongoing money laundering probe against Bajwa Developers, as the ED continues to probe the alleged siphoning of money collected from buyers.
