Businessman Raj Singh Gehlot Cleared of Money Laundering Charges in Ambience Hotel Loan Fraud Case

The Patiala House Court has discharged Raj Singh Gehlot, promoter of the Ambience Group, from a money laundering case related to alleged bank loan fraud for the Ambience Hotel construction in Delhi, due to insufficient evidence presented by the Enforcement Directorate.

In a significant legal development, the Patiala House Court has discharged businessman Raj Singh Gehlot, the promoter of the Ambience Group, from a money laundering case linked to alleged bank loan fraud. The case involved loans issued by a consortium of banks for constructing the Ambience Hotel in Shahdara, Delhi.

The Enforcement Directorate (ED) had accused Gehlot of laundering money associated with these loans. However, the court found the evidence insufficient to uphold the charges, resulting in Gehlot's acquittal. Additional Sessions Judge Chanderjit Singh noted that the material submitted by ED did not adequately establish a prima facie case under sections 3/4 of the Prevention of Money Laundering Act (PMLA).

Gehlot, who was arrested on July 28, 2021, had previously been granted interim bail on medical grounds, which was extended multiple times before he received regular bail in April 2023. Represented by a team of advocates, including Tanveer Ahmed Mir and Shikhar Sharma, Gehlot was accused of defrauding a bank consortium led by Jammu and Kashmir Bank.

The Enforcement Directorate initiated its investigation based on an FIR by the State ACB, Jammu, against Aman Hospitality Pvt Ltd (AHPL) and its directors. The probe revealed that over Rs 800 crore sanctioned for the Ambience Hotel was allegedly siphoned off by AHPL and Gehlot through a complex network of companies. Despite these allegations, the court concluded that the evidence was insufficient to proceed with charges.

(With inputs from agencies.)