Delhi High Court Issues Notice to ED on Plea of Supertech Chairman

The Delhi High Court issued a notice wednesday to  Enforcement Directorate regarding Supertech Chairman RK Arora’s plea challenging the trial court’s dismissal of his regular bail application in a money laundering case. Justice Manoj Kumar Ohri’s bench requested a response from the Enforcement Directorate and scheduled the matter for February 21, 2024.

The plea aims to quash the trial court’s order denying bail to RK Arora, arguing that there is no substantive change in circumstances, and the filing of the prosecution complaint by the Enforcement Directorate does not constitute a material change. The trial court judge, in a detailed order dated January 24, 2024, dismissed Arora’s bail plea, citing the previous dismissal of a bail application on July 22, 2023. The judge stated a reluctance to entertain the current bail application under Section 439 Cr. PC on behalf of accused Ram Kishor Arora and consequently dismissed it.

Recently, the court granted interim bail for 30 days to Supertech’s chairman, RK Arora, based on health and medical grounds. Arora had sought interim bail citing health issues.

Earlier, the trial court took cognizance of the prosecution complaint (chargesheet) filed by the Enforcement Directorate against Arora and others. The court issued summons to all accused named in the chargesheet and firms through their representatives. ED’s Special Public Prosecutors Naveen Kumar Matta, Manish Jain, along with Mohd. Faizan, appeared in the matter before the court.

The Enforcement Directorate had filed a prosecution complaint against RK Arora in Delhi’s Patiala House Court in connection with a money laundering case. Arora was arrested on June 27 under the criminal sections of the Prevention of Money Laundering Act (PMLA).

ED informed the court that 23 FIRs were registered by the Economic Offences Wing (EOW) of Delhi Police, Haryana Police, and UP Police against Supertech Limited and its group companies. The charges included criminal conspiracy, criminal breach of trust, cheating, and other offenses involving allegations of cheating at least 670 home buyers for an amount of Rs 164 crore. ED also alleged that the funds collected by Supertech Ltd. were diverted to their group companies for the purchase of properties with significantly lower values.

ED further claimed that the accused had acquired properties and made illegal gains through criminal activities related to scheduled offenses. The prosecution argued that a prima facie case for offenses punishable under Section 3 and Section 4 of the PML Act had been established.