AAP leader Singla denied bail in Rs 155-crore bank fraud, laundering case

Chandigarh: A special court dealing with Prevention of Money Laundering Act cases in Panchkula on Saturday dismissed the regular bail application of AAP leader Deepak Singla, who was arrested by the Directorate of Enforcement in connection with an alleged bank fraud and money laundering case. The order was passed by Vijayant Sehgal, special judge for CBI and PMLA cases at Panchkula. The detailed order was not yet uploaded at the time of filing this report. The decision came on a bail application moved by Singla's defence counsel on May 26.In their 18-page bail plea filed along with supporting documents, the defence maintained that Singla was innocent, and alleged that he became a victim of political vendetta by the ruling dispensation in Delhi. The counsel argued that Singla cooperated with investigating agencies throughout the probe and pointed out that he was never named as an accused in the predicate offence or in any of the chargesheets filed by federal agencies since 2021. Singla, who is currently lodged in judicial custody, was arrested under Section 19 of the Prevention of Money Laundering Act, 2002, on May 18, 2026. Following his arrest, the ED obtained transit remand from the Rouse Avenue Court in New Delhi and subsequently secured six days of custodial remand from the Special PMLA Court in Panchkula. On May 26, he was remanded to 14 days of judicial custody.According to the ED, the arrest is linked to a large-scale bank fraud and money laundering investigation arising out of a CBI case registered against M/s Mahesh Timber Pvt Ltd, its directors and other individuals. Investigators allege that the accused fraudulently enhanced Foreign Letters of Credit through unauthorised SWIFT amendments, resulting in losses of approximately Rs 155 crore to Oriental Bank of Commerce and other consortium banks. The ED has alleged that nearly Rs 195 crore was remitted overseas through manipulated FLC transactions without any genuine import of timber. Customs verification reportedly revealed forged Bills of Entry and Bills of Lading that were submitted to banks to support the transactions.The ED has named Singla along with co-accused Ashok Mittal and others in the money laundering investigation. The rest accused were granted bail and were released by the court in the past. According to the agency, the accused were part of a network that allegedly facilitated fraudulent foreign credit transactions and projected fake timber import activities. Investigators claim that a web of Indian and Singapore-based firms was used to create the appearance of legitimate international trade while funds were allegedly diverted abroad through manipulated banking channels. During searches conducted at multiple locations in Delhi and Goa, the ED recovered unaccounted cash amounting to Rs 27.75 lakh, 6,000 Singapore dollars, financial records, electronic devices and other documents that the agency claims are incriminating. The seized material is being examined as part of the ongoing investigation into the alleged laundering of proceeds generated from the bank fraud.The ED has maintained that the probe is continuing and that the role of all accused persons, including co-conspirators and beneficiaries of the alleged transactions, is under scrutiny. MSID: 131552821 413 |