High Court Denies Bail to Bajwa Developers CMD in ₹662-Crore PMLA Case

The Punjab and Haryana High Court has rejected the regular bail plea of prominent real estate promoter Jarnail Singh Bajwa, Chairman and Managing Director of Bajwa Developers Limited, in connection with an extensive money laundering investigation conducted by the Enforcement Directorate (ED). Dismissing the petition, Justice Manisha Batra observed that the court found no reasonable grounds at this stage to believe the accused was not guilty of the alleged economic offenses. The probe centers on high-profile residential ventures developed by the firm across the Mohali periphery, notably the sprawling Sunny Enclave project, where hundreds of prospective homebuyers were allegedly defrauded of their lifetime savings through systematic diversion and siphoning of project capital.Homebuyer Deception: 45 FIRs Expose Wide-Ranging Irregularities in Sunny EnclaveThe federal money laundering probe stems from widespread criminal grievances lodged by retail property investors over several years:Mounting Police Complaints: Investigations revealed that multiple FIRs have been registered across Punjab police stations since 2017 against the builder, detailing recurring instances of non-delivery of physical possession, changing of plot numbers without customer consent, and chronic refusal or delay in executing registered sale deeds.Multiple Sales of Single Units: The investigation documented instances where identical land parcels and housing units were sold multiple times to separate unsuspecting buyers, leaving consumers locked in legal disputes while their capital remained unaccounted for.Origin of PMLA Proceedings: The Enforcement Directorate initiated its formal ECIR inquiry after identifying at least 45 predicate FIRs filed against Bajwa and his associated corporate entities, establishing the scheduled offenses necessary to trace and attach the criminal proceeds under the anti-money laundering statute.Raids, Luxury Fleets, and Diverted Funds: ED Pegs Crime Proceeds at ₹662.49 CroreA detailed forensic audit conducted by central investigators revealed that customer deposits were routed away from site construction into personal and corporate assets:Premises Searched and Cash Seized: During search operations conducted in May 2025 across premises linked to Bajwa and his associates, the ED recovered approximately ₹42 lakh in liquid cash and froze ₹3.31 crore deposited across multiple bank accounts belonging to the petitioner, family members, and allied commercial fronts.Impounded Luxury Automobiles: Investigating officers seized a fleet of luxury motor vehicles valued at approximately ₹1.07 crore, including a Range Rover, BMW, Toyota Land Cruiser, and Porsche.₹662.49 Crore Diversion Trail: Forensic examination of Bajwa Developers' financial statements for the 2019–20 fiscal year alongside witness depositions led the ED to peg the total proceeds of crime at ₹662.49 crore, alleging that advances intended for infrastructure were systematically diverted toward private land banking, interest-free loans to sister concerns, and personal luxury expenditures.High Court Rebuffs Plea: Stringent Section 45 PMLA Bail Thresholds UnmetIn a detailed ruling, the High Court held that the developer failed to satisfy the mandatory dual statutory tests governing release on bail in economic offenses:The Section 45 Barrier: Justice Manisha Batra ruled that under Section 45 of the PMLA, bail cannot be granted unless the court is judicially satisfied that the petitioner is not guilty of the alleged offense and is unlikely to commit any further offense while released on bail, a condition not met in this petition.Pending Scheduled Offenses: While the defense contended that certain underlying disputes had been resolved or quashed through mutual settlements, the court emphasized that numerous primary FIRs relating to scheduled offenses remain active and pending before trial courts.Detention Period No Grounds for Release: The bench clarified that the mere duration of custody—with Bajwa having been in judicial detention since October 28, 2025—does not by itself constitute an adequate legal ground to grant regular bail in serious financial fraud cases.