‘Money used for personal gains, expenditure’: Punjab and Haryana HC denies bail to Mahira Group promoter Dharam Singh Chhoker

The Punjab and Haryana High Court also noted several complaints and FIRs filed by distressed homebuyers, observing that the Mahira Group case was not an isolated instance.

Dharam Singh ChhokerJustice Tribhuvan Dahiya found merit in the Enforcement Directorate (ED)’s contention that Dharam Singh Chhoker posed a flight risk. (File Photo)

The Punjab and Haryana High Court Wednesday refused bail to Mahira Group promoter and former Congress MLA from Samalkha in Haryana, Dharam Singh Chhoker, in a money laundering case, underscoring allegations that hundreds of crores of rupees collected from homebuyers were siphoned off while promised flats remained incomplete.

Dismissing the plea, Justice Tribhuvan Dahiya found merit in the Enforcement Directorate (ED)’s contention that Dharam Singh Chhoker posed a flight risk. He was arrested last year.

The case stems from an affordable housing project in Sector 68, Gurgaon, where around 1,500 buyers collectively paid about Rs 363 crore for flats to be delivered by 2021-22. Investigators allege that instead of being utilised for construction, funds were diverted through a web of companies linked to the Mahira Group.

ED alleged that the proceeds of crime amounting to Rs 616 crore were generated and laundered, with funds routed as loans and advances to associated entities and used for personal expenditure, including the purchase of properties, vehicles, jewellery, and even wedding expenses.

Quoting from the investigation record, the court noted that project funds “were siphoned off… and used this money for unintended purpose… for personal gains or for personal expenditure… instead of constructing the flats of affordable housing projects.”

The Central agency also pointed to “bogus purchases… to the tune of Rs 56 crore (approx.)”, where payments were allegedly cycled through entities and cash was withdrawn for the accused family’s private use.

The court noted multiple complaints and FIRs filed by aggrieved homebuyers, observing that the case was not an isolated instance but part of a broader pattern of alleged cheating, forgery, and fund diversion across projects.

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Equally significant to the court was the conduct of Dharam Singh Chhoker during the investigation. It recorded that Chhoker had failed to comply with at least 17 summons and could not be arrested despite repeated non-bailable warrants. He was eventually apprehended in May 2025 from a hotel in New Delhi after “his outrageous attempt to flee from the scene was foiled… with the help of Delhi Police and security staff.”

“Keeping these facts in view, no exception can be taken to the assertion by the ED that he is a flight risk,” the court said.

Rejecting the argument of prolonged incarceration, the court held that the custody since May 2025 could not be termed excessive in the context of the case, particularly given that the trial was set to commence and the delays could not be attributed to the prosecution.

It also noted that the stringent twin conditions under the Prevention of Money Laundering Act had not been satisfied, and that Dharam Singh Chhoker had made no effort to demonstrate compliance with them.

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While the defence argued that the evidence was largely documentary and that the co-accused had been granted bail, the court declined parity, noting that the earlier bail order was under challenge before the Supreme Court.

Concluding that the gravity of the allegations, the scale of the alleged fraud against homebuyers, and the accused’s conduct weighed against him, the court dismissed the petition, paving the way for trial to proceed.

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

 

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