Businessman Raj Singh Gehlot Cleared in Money Laundering Case by Patiala House Court
The Patiala House Court in New Delhi has discharged Raj Singh Gehlot, promoter of the Ambience Group, in a money laundering case related to alleged bank loan fraud. This case involved loans granted by a consortium of banks for the construction of the Ambience Hotel in Shahdara, Delhi.
The Enforcement Directorate (ED) had accused Gehlot of money laundering linked to these loans. However, the court found insufficient evidence to proceed with the charges and cleared him of the allegations. Additional Sessions Judge Chanderjit Singh stated that the material produced by ED was not sufficient to show a prima facie case under sections 3 and 4 of the Prevention of Money Laundering Act (PMLA) against any of the accused persons.
Raj Singh Gehlot was arrested on July 28, 2021, in connection with the money laundering case. He was granted interim bail on medical grounds, which was extended multiple times, and in April 2023, he was granted regular bail. Gehlot was represented by a team of advocates including Tanveer Ahmed Mir, Shikhar Sharma, Vaibhav Suri, Kartik Venu, Saud Khan, Fahad Khan, Swati Khanna, Anusara, Imran, and Yash Datt.
The case was based on an FIR registered by the State ACB, Jammu, against Aman Hospitality Pvt Ltd (AHPL) and its Directors for money laundering in the construction and development of the 5-star ‘Leela Ambience Convention Hotel’ near the Yamuna Sports Complex in Delhi. The ED had claimed that a significant portion of a loan amounting to 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 network of companies controlled by them.
Doubts Revealed
Raj Singh Gehlot -: Raj Singh Gehlot is a businessman who promotes the Ambience Group, a company involved in real estate and hospitality.
Patiala House Court -: Patiala House Court is a court in New Delhi, India, where legal cases are heard and decided.
money laundering -: Money laundering is the illegal process of making large amounts of money generated by a criminal activity appear to be earned legally.
Ambience Group -: Ambience Group is a company in India that builds and manages real estate properties like hotels and shopping malls.
bank loan fraud -: Bank loan fraud is when someone lies or cheats to get money from a bank that they are not supposed to get.
bail -: Bail is when someone who has been arrested is allowed to go home until their trial, usually after paying some money as a promise to return to court.
Enforcement Directorate -: The Enforcement Directorate is a government agency in India that investigates financial crimes like money laundering.
siphoning off -: Siphoning off means secretly taking money from a larger amount, usually in a dishonest way.
Rs 800 crore -: Rs 800 crore is a very large amount of money in Indian currency, where 1 crore equals 10 million rupees.
