Mohali land rates double in 3 years: Why ED raids hit real estate boom

The ED later registered a Prevention of Money Laundering Act (PMLA) case on the basis of the Vigilance FIR, conducted raids across Punjab and Chandigarh, and began tracing the money trail linked to land acquisition and compensation.

The second FIR, registered in November 2022, related to Suntec City and associated CLU approvals in the Mohali-New Chandigarh belt, where investigators are examining how land earmarked for institutional or educational purposes was allegedly converted into high-value residential and commercial property.

The case focuses on the alleged manipulation of master plans, zoning changes and CLU permissions that dramatically increased land prices and benefited select developers and landowners. The ED has summoned GMADA officials, sought planning and registry records, and widened scrutiny into land transactions in the Majri block and New Chandigarh region. Investigators believe the core of the alleged scam lies not in land acquisition itself, but in the conversion of land-use categories that generated massive private gains.

In the third FIR linked to Punjab Chief Town Planner Pankaj Bawa, it was alleged that Bajwa Developers Limited obtained approvals for a residential and commercial project spread over 179 acres in villages Sinhpur, Hasanpur and Jandpur in Mohali district. The company also secured approval for a residential layout plan in Mohali and a housing project for economically weaker sections (EWS) over 9.09 acres.

Bawa was chargesheeted on the grounds that “all this happened under his watch and he did not monitor the case properly,” said a source privy to the developments.

This FIR, registered in February 2024, became significant because it linked administrative decision-making with alleged financial irregularities in land and planning matters. Sources in the bureaucracy said the case gathered momentum after the probe against Bawa. Once the Vigilance Bureau filed charges and financial transactions came under scrutiny, the ED began examining whether the alleged acts generated “proceeds of crime” under the PMLA framework.

Officials said this FIR helped the ED expand its reach beyond isolated corruption allegations into a wider examination of Punjab’s change-of-land-use ecosystem involving planning authorities, tehsils and revenue records.

The ED has now summoned GMADA Chief Administrator Sandeep Kumar in connection with its ongoing money-laundering investigation into alleged irregularities in CLU approvals granted to Suntec City and Altus Space Builders Pvt Ltd projects.

CLUs behind ED focus

At the heart of the raids and summons are the CLUs in Mohali and New Chandigarh. Sources said Punjab’s master plans use colour-coded zoning for educational, residential, commercial and institutional purposes. Investigators are examining how land originally reserved for educational or institutional use in areas around Mullanpur and New Chandigarh was later converted for residential use, sharply increasing its market value.

Officials familiar with the process pointed to how certain parcels designated years ago as “Edu City” zones allegedly became lucrative residential sectors. “This happened in New Chandigarh when CLUs were allowed in Edu City and IT City. This was also allowed in Sector 87 in Mohali. All these CLUs were allowed in February this year. The master plan is locked till 2031. However, these CLUs were cleared,” said a source. The CLU for the Suntec City project was approved in 2016.

In some cases, land prices reportedly rose from nearly Rs 3.5 crore per acre to around Rs 12 crore per acre after CLU changes in Edu City and IT City areas. Investigators are examining who benefited from these changes, who pushed the amendments, and whether public office was used to create private gains.

Through the probe, investigating agencies are also trying to establish whether there are links to the senior leadership of the Aam Aadmi Party (AAP). Sources said the party’s senior leadership became more active in Punjab after AAP’s loss in the Delhi Assembly elections in February 2025.

Officials said the “change in master plan colour-coding from purple (institutional) to yellow (residential)” is one of the factors that has drawn the attention of investigators. “The land is now worth hundreds of crores. The process may appear administrative on paper, but it can create enormous wealth overnight,” said a source.

Officials added that the ED’s interest is no longer confined to a single project. The agency has reportedly begun examining registries and transactions across parts of the Majri block and the New Chandigarh belt, where land-use conversions transformed the economics of entire sectors.

However, officials noted that land acquisition itself is rarely illegal on paper. “CLU changes are officially processed through notifications, board approvals and planning amendments. The challenge for investigators is proving criminal intent. In many files, there may be no direct written instruction showing quid pro quo. Investigators instead look for undue gain — whether a sequence of official decisions disproportionately enriched specific individuals or entities,” said an official.