Inside the Rs 200 crore Punjab land ‘scam’: Fake farmers, flying cash, and a major arrest by ED
ED stated that its investigation found Ajay Sehgal, secretary of the Indian Cooperative House Building Society, prepared fake consent letters concerning 30.5 acres of land owned by 15 landowners.
ED conducted searches on May 7 at eight premises linked to the Indian Cooperative House Building Society and ABS Township Private Limited. Express Photo The Jalandhar unit of the Enforcement Directorate Friday arrested Ajay Sehgal, secretary of the Indian Cooperative House Building Society, in connection with a money laundering case linked to the alleged submission of fake consent letters to fraudulently obtain permission for land for the Suntec City project in Punjab.
According to ED, Sehgal was arrested under the provisions of the Prevention of Money Laundering Act (PMLA). The agency said the investigation was initiated on the basis of an FIR registered by the Punjab Police following complaints from farmers alleging that their consent had been forged to obtain a Change of Land Use (CLU).
CLU is an approval given by the government to convert the designated use of land from one category to another, including converting agricultural land to non-agricultural purposes, as well as residential, industrial or commercial use.
ED conducted searches on May 7 at eight premises linked to the Indian Cooperative House Building Society and ABS Township Private Limited. During the searches, the agency claimed cash amounting to Rs 21 lakh was thrown from the balcony of businessman Nitin Gohel, scattering onto the road below. The cash was later recovered by ED officials.
ED stated that its investigation found Sehgal prepared fake consent letters concerning 30.5 acres of land owned by 15 landowners. Based on these alleged forged consent letters, CLU permission was granted for developing the real estate mega project ‘Suntec City’. The agency also claimed that the consent letters bore forged signatures and thumbprints of the landowners.
It also claimed that, besides residential plots, Sehgal developed the La Canela residential multi-storey complex and the District 7 commercial complex using CLUs obtained through fake consent letters.
According to the agency, it also found that units in these projects were allegedly sold even before registration and approval from the Real Estate Regulatory Authority (RERA). It claimed that sales exceeding Rs 200 crore had been made from these “illegal unauthorised projects”.
The agency further claimed that Sehgal had not, to date, transferred plots meant for Economically Weaker Sections (EWS) to the Estate Officer, Greater Mohali Area Development Authority (GMADA).
ED also claimed that, contrary to discussions held before the Punjab and Haryana High Court, only a partial CLU for 30 acres of land had been revoked. The agency alleged that action under Section 85 of the Punjab Regional and Town Planning and Development Act was initiated instead of Section 90 to help Suntec City liquidate its remaining stock.
According to ED, the ongoing investigation has revealed alleged large-scale irregularities in GMADA and the Department of Town and Country Planning in granting approvals to Suntec City and other developers for illegal gratification, allegedly benefiting real estate developers at the cost of farmers and landowners.
It said the role of other senior officials and government authorities in the Department of Town and Country Planning (DTCP) and GMADA was under investigation.
The agency said it was in the process of making more arrests and probing the alleged involvement of senior GMADA officials and other public servants who may have supported the fraud and received kickbacks.
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