Money Laundering Case: Delhi HC Reserves Order on Supertech Chairman’s RK Arora Default Bail

The Delhi High Court on Wednesday reserved the order on the default bail plea filed by Supertech Chairman RK Arora in a money laundering case.

A bench of Justice Manoj Kumar Ohri also disposed of the ED’s plea challenging interim bail granted to Arora on medical grounds and noted that his interim bail period is ending tomorrow.

Default bail is enshrined in Section 167(2) of the CrPC, which states that when an accused is arrested and detained in custody, the investigation must be completed within a specified time frame, failing which the accused shall be released on bail. Recently, the same bench sought a response to the Enforcement Directorate plea filed by Arora challenging the dismissal of his regular bail and listed the matter for February 21, 2024.

Arora sought the quashing of a Trial Court order denying him bail, stating that, “There is no substantive change in the circumstances. The filing of a prosecution complaint by the Enforcement Directorate does not amount to a change of material circumstances.”

The trial court Judge on January 24, 2024, while dismissing the regular bail plea of RK Arora, stated, “After the dismissal of the previous bail application vide detailed order dated 22.07.2023, I am not inclined to entertain the present bail application moved under Section 439 CrPC on behalf of accused Ram Kishor Arora. Accordingly, the same is dismissed.”

On January 16, 2024, the trial Court granted interim bail for 30 days to Supertech’s chairman and Promoter R K Arora on medical and health grounds. Arora had moved interim bail citing health and medical grounds. Earlier, the trial Court took cognizance of the prosecution complaint (chargesheet) filed by the Enforcement Directorate (ED) against him and others and also issued summons to all accused named in the chargesheet and firms through their representatives.

The Enforcement Directorate (ED) filed a prosecution complaint (chargesheet) against the Supertech’s Chairman in relation to a money laundering case in Delhi’s Patiala House Court.

Arora was arrested on June 27 under the criminal sections of the Prevention of Money Laundering Act (PMLA). Earlier, ED apprised the court that 23 FIRs were registered by the Economic Offences Wing (EOW), Delhi Police; Haryana Police and UP Police against Supertech Limited and its group companies under Section 120B (criminal conspiracy) read with 406(criminal breach of trust)/420 (cheating)/467/471 IPC having allegations of cheating at least 670 home buyers for an amount of Rs 164 crore. ED also alleged that the amount collected by Supertech Ltd. was diverted to their group companies for the purchase of properties and the company with land having much lesser value. ED alleged that the accused persons have acquired properties, and made illegal/wrongful gain arising out of the said proceeds of crime by involving, indulging and commissioning criminal activities related to scheduled offences. It is stated that the prima facie case for the commission of an offence punishable under Section 3 punishable under Section 4 of the PML Act has been made.