DEHRADUN: Uttarakhand HC on Wednesday rejected the bail plea of Dehradun-based builder accused in a Rs 30 crore fraud case involving homebuyers, who has been in custody since Oct 2023.
A case was filed against Rajpal Walia by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) and sections 420 and 406 of Indian Penal Code (IPC) in 2021 for financial irregularities linked to a multi-storey apartment project on Sahastradhara Road near Rajpur Road.
Dismissing the bail plea, the single judge bench of Justice Ashish Naithani noted that Deepak Mittal, co-accused in case, had already absconded and fled abroad with his wife. “The applicant failed to demonstrate any exceptional circumstances warranting bail. His contention regarding prolonged incarceration does not hold weight in economic offences, where the gravity of the crime and its impact on society take precedence over the mere passage of time,” the court stated. It added that the stringent conditions under PMLA impose a high threshold for bail, and Walia “had not discharged the burden of proving that he was neither guilty nor likely to re-offend if released”.
The case pertains to alleged financial irregularities in real estate projects developed by Pushpanjali Realms & Infratech Ltd, where homebuyers claimed they were induced into booking flats in projects such as Eminent Heights and Orchid Park, which were left incomplete. As a director and investor in the company, Walia, along with others, allegedly collected substantial sums from homebuyers but diverted the funds for personal use.
According to the ED’s investigation, Rs 31.1 crore was deposited into the company’s accounts between March 2015 and Jan 2020.
However, instead of using the funds for completing the projects, the money was allegedly transferred to the personal accounts of Walia and his wife, Shefali Walia, and used for loan repayments, property acquisitions, self-withdrawals, and third-party transactions to conceal the source of funds.
Walia’s counsel argued that his continued incarceration was unjustified, claiming that the company’s financial distress was primarily caused by managing director Deepak Mittal, who siphoned off a substantial amount before leaving the country. The defence also claimed that the state failed to establish valid legal basis for applying PMLA to the case.
The prosecution countered that Walia played a key managerial role and had previously attempted to obstruct proceedings. It also raised concerns about the possibility of interfering with witnesses and evidence tampering. The state counsel also placed materials on record indicating that the applicant had created legal obstacles. Upholding the prosecution’s arguments, the court ruled that PMLA, as a special legislation, overrides general bail provisions under CrPC. “In light of these factors, this court finds no merit in the bail application,” the court order stated.
