'Huge proceeds of crime; Punjab and Haryana HC dismisses petition of Mahira Group owner in homebuyer scam

The Punjab and Haryana High Court has dismissed a petition filed in an ED case by Sikandar Singh – `beneficial owner’ of Mahira Group of companies and other shell companies.

Justice Mahabir Singh Sindhu, among other things, ruled that ‘huge proceeds of crime’ had been identified and ‘prima facie, the offence of money laundering is clearly made out against the petitioner’.

Justice Sindhu ruled about 1500 prospective home buyers had invested their hard earned money with a hope to get shelter. But the entire money – approximately Rs 363 crore – had been misappropriated and laundered by the petitioner in conspiracy with other co-accused. As such there was no option, except to dismiss the petition.

The petitioner had challenged impugned order dated April 29, whereby fresh warrants of arrest against him and the co-accused were issued. Also challenged was another order dated May 1, vide which petitioner was remanded to the Enforcement Directorate’s custody by a Special Judge for five days and order dated May 1, whereby his application for discharge was declined.

The grounds of arrest, arrest order and arrest memo issued by ED against the petitioner were also challenged.

Justice Sindhu asserted the petitioner had been found involved in money laundering. The present petition was nothing but complete misuse of the process of court as well as law.

The Bench added meticulous compliance of the provisions were made in the present case while executing the arrest warrant with the help of local police by the ED officials in terms of Section 54 of the Prevention of Money Laundering Act (PMLA). Besides this, all these safeguards were complied with by the ED officials.

Justice Sidhu added the ‘grounds of arrest’ were duly supplied to petitioner. An email, coupled with a sealed envelope, containing the relevant material was also sent to the adjudicating authority.

The Bench, in its detailed order, took note of the allegations that the petitioner used the funds of homebuyers for wedding ceremony of a family member.

As many as “273 room nights” were booked in Delhi’s Le Meridien Hotel in the name of M/s DS Home Construction Pvt Ltd from February 22, 2023, to March 13, 2023.

“The contract was executed and crores of rupees were spent for the unintended purpose from hard earned money of the homebuyers and again the proceeds of crime were swindled as purported to be genuine”.