A Special Court under the Prevention of Money Laundering Act (PMLA) in Panchkula has dismissed the bail application of Aam Aadmi Party (AAP) leader Deepak Singla, who was arrested in connection with a bank fraud and money laundering case involving alleged losses of over Rs 155 crore.
Singla, AAP’s Goa incharge who contested the Vishwas Nagar Assembly constituency in Delhi in both 2020 and 2025, was arrested by the Enforcement Directorate (ED) on May 18.
The case traces its origins to an FIR registered by the CBI on May 8, 2018, following a complaint by Oriental Bank of Commerce (OBC). According to the CBI, M/s Mahesh Timber Private Limited established a wholly owned subsidiary in Singapore that availed credit facilities from banks there against standby letters of credit issued by an Indian banking consortium.
Investigators alleged that the company, in conspiracy with private individuals, fraudulently enhanced Foreign Letters of Credit (FLCs), causing a wrongful loss of about Rs 155.21 crore to OBC. The CBI later found that the company’s outstanding liability stood at Rs 239.46 crore and filed a chargesheet in August 2020.
The ED registered an Enforcement Case Information Report (ECIR) in September 2019 and alleged that the accused, in collusion with a senior OBC manager, fraudulently inflated FLCs to Rs 173.03 crore from their original value of Rs 21.47 crore. It further claimed that forged bills of entry, bills of lading and other import documents were used to siphon off funds.
According to the ED, Singla is the brother of co-accused Raman Singla, Director of Amazon Exports Pte Ltd, described as a shell company, and the nephew of principal accused Ashok Kumar Mittal, a director of Mahesh Timber Private Limited.
The agency alleged that Singla played an active role in the conspiracy and held directorships and managerial positions in several linked entities, including M/s Mahesh Timber Private Limited and M/s Traffic Media India Private Limited.
It further claimed that Rs 2.82 crore was routed through accounts linked to Singla and Mittal in a circular manner to conceal the origin and ownership of the funds. During searches conducted on May 18, the ED recovered Rs 25 lakh in cash and SGD 6,000 from Singla’s premises.
Rs 143 crore yet to be traced
Opposing bail, ED Special Public Prosecutor Harneet Singh Oberoi argued that nearly Rs 143 crore allegedly siphoned off in the fraud remains untraced. He submitted that further investigation was not only necessary but “imperative for a just and fair determination of the matter.”
The ED also informed the court that Singla gave evasive replies to 150 of 165 questions during custodial interrogation and deliberately withheld the password of his seized mobile phone, which investigators believe contains incriminating material.
High-value transactions remain unexplained
The agency further alleged that Singla failed to explain several high-value transactions, including Rs 60 lakh received from Ragni Shyam and transferred to M/s Traffic Media India Private Limited. It also questioned transfers involving Rs 1.05 crore received from M/s Kayo International, operated by his wife, and Rs 1.41 crore credited by Jai Durga Enterprises, allegedly controlled by a co-accused.
Singla’s counsel argued that the investigation had been pending for eight years and that the material relied upon by the ED had long been available. The defence also contended that other accused persons with equal or greater roles had not been arrested and that Singla deserved similar treatment.
However, in its June 6 order, the Special Court observed that the ED had kept further investigation open in its prosecution and supplementary complaints and held that this fact did not entitle Singla to the “grant of bail.”
