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A Delhi High Court bench of Justice Manoj Kumar Ohri has denied bail to Ambience Group promoter Raj Singh Gehlot in connection with a money laundering case under the Prevention of Money Laundering Act, 2002, linked to an alleged bank loan fraud of Rs 800 crores.

Justice Manoj Kumar Ohri had earlier reserved orders in the case after hearing Sr. Adv. Abhishek Manu Singhvi who represented Gehlot.

Gehlot was arrested for the alleged offence in July last year after the Enforcement Directorate (ED) raided Gehlot, his company Aman Hospitality Private Limited (AHPL), some other firms of the Ambience Group, Director in the company Dayanand Singh, Mohan Singh Gehlot, and their associates.

The ED case against Gehlot (also a promoter of the Ambience Mall in Gurugram) is based on a 2019 FIR of the Anti-Corruption Bureau (ACB) of Jammu against AHPL and its directors for alleged money laundering in the construction and development of the five-star Leela Ambience Convention Hotel located near Yamuna Sports Complex in Delhi.

The ED claimed that a huge part, of the loan amount of more than Rs 800 crore, sanctioned by a consortium of banks for the hotel project, was siphoned off by AHPL, Raj Singh Gehlot, and his associates through a web of companies owned and controlled by them, and opposed the grant of bail and said the case involved serious allegations.

In October last year, Additional Sessions Judge Dharmender Rana had refused to grant bail to Gehlot, saying there was a strong possibility that he could hamper the investigation if released on bail.

"Considering the nature of the offence, seriousness of allegations and a strong possibility of applicant/accused attempting to influence the course of trial by influencing the witnesses and tampering with the evidence, I am of the considered opinion that the bail application is bereft of any merits and the same is accordingly dismissed," the trial court had said.

Cause Title: Raj Singh Gehlot vs Directorate of Enforcement