‘Misuse of muafi land’: ED searches Wahid Sandhar Sugar Mill, Gold Gym, linked premises in Phagwara
In 2000, the firm acquired rights to operate sugar mill on muafi land, but breached conditions by mortgaging and selling it, says official
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Several ED teams, comprising around four dozen officials, launched simultaneous searches at different locations. (Express Archives)The Enforcement Directorate (ED) on Wednesday carried out search operations at eight locations across Punjab and Chandigarh in connection with their investigation into money laundering involving Phagwara-based Wahid Sandhar Sugars Limited and related entities and persons, ED sources said.
Sources said raids were conducted at Wahid Sandhar Sugar Mill, Gold Gym and several other premises in Phagwara linked to their owner Jarnail Singh Wahid.
Sources said it was found during the probe that Wahid Sandhar Sugars Ltd had “misused the muafi land initially allotted by Maharaja Jagatjit Singh of Kapurthala State in 1933. The said muafi land was intended for running a sugar mill as per the conditions of allotment, and its mortgage or sale was strictly prohibited.”
Wahid Sandhar Sugars Ltd had acquired the rights to operate the sugar mill on the muafi land in 2000. However, the company allegedly breached the conditions by mortgaging and selling the land, said ED sources.
“By engaging in such activities, the firm caused losses to the state government while wrongfully gaining benefits for themselves,” ED officials said, adding that “the proceeds of crime generated out of these alleged activities are under investigation, with the estimated amount pegged at approximately Rs 95 crore.”
For years, Wahid and his sugar mill have faced allegations of failing to pay farmers’ dues amounting to over Rs 40 crore, along with charges of misusing government land.
Several ED teams, comprising around four dozen officials, launched simultaneous searches at different locations, including residential and commercial properties associated with Wahid, they said.
According to ED sources, based on an FIR lodged by the Punjab Vigilance Bureau, the investigation into the money laundering charge was initiated against the firm.
On Wednesday, officials examined documents, electronic devices and records related to financial transactions, sources said
The action is also linked to complaints by farmers, who have long protested against the non-payment of their dues, they said, adding that investigators are now probing whether the withheld funds were diverted for illegal transactions or money laundering.
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