RealEstate – ED Expands Punjab Land Use Probe Into Senior Officials
RealEstate – The Enforcement Directorate has widened its investigation into alleged irregularities linked to land use approvals in Punjab, with the focus now extending to senior government officials connected to urban planning and housing departments. The probe is examining how permissions for multiple real estate developments were granted, including the high-profile Suntech City project in New Chandigarh.
Senior Bureaucrats Under Investigation
Officials familiar with the case said the agency is reviewing the role of key officers involved in granting Change of Land Use (CLU) approvals. Among those being examined are senior figures from the Town and Country Planning Department, including the Director and Chief Town Planner, along with other authorities associated with the approval process.
The Housing and Urban Development Department has also come under the scanner as investigators attempt to determine whether regulatory procedures were bypassed during the clearance of large housing projects.
Developer Arrested in Multi-Crore Land Case
The investigation intensified after the arrest of Ajay Sehgal, a businessman who moved from the jewellery trade into real estate development. Sehgal, promoter of the Indian Cooperative House Building Society, was taken into custody in connection with allegations involving forged consent letters allegedly used to secure CLU approvals for a major township project.
According to investigators, fake documents were allegedly prepared in the names of landowners whose approval was required before development permissions could be issued. Officials claim forged signatures and thumb impressions were used to obtain clearances for approximately 30.5 acres of land connected to the Suntech City project.
Possible Action Against More Officials
Sources linked to the investigation indicated that officials associated with the Greater Mohali Area Development Authority and the Town and Country Planning Department may face legal action as the inquiry progresses. The agency is reportedly examining whether approvals were granted despite irregularities in documentation and land acquisition procedures.
The probe has also drawn attention to the alleged involvement of politically influential individuals across different administrations. Investigators are said to be reviewing whether political connections influenced administrative decisions related to the projects under scrutiny.
Questions Raised Over Regulatory Enforcement
Apart from the Suntech City matter, the agency is investigating more than a dozen real estate projects where authorities allegedly adopted limited punitive measures despite reported violations.
Officials are examining why certain projects faced only partial cancellation of CLU permissions under provisions of the Punjab Regional and Town Planning and Development Act instead of stricter action that could have halted project activities entirely.
Investigators suspect that softer regulatory action may have allowed developers to continue property sales and reduce financial losses while projects remained under legal examination.
Focus on FIR and Money Laundering Links
Another important aspect of the inquiry relates to the absence of criminal cases under the Punjab Apartment and Property Regulation Act despite allegations of large-scale violations in several housing developments.
There is also discussion within administrative circles regarding attempts allegedly made to seek cancellation of an earlier FIR linked to the case. Investigators believe such a move could have weakened the foundation of the Enforcement Directorate’s money laundering proceedings because the original police complaint forms the basis of action under the Prevention of Money Laundering Act.
Sehgal had earlier approached the court seeking to quash a case registered at Mullanpur police station in 2022. The FIR included charges related to cheating, forgery, fabrication of documents and criminal conspiracy.
Search Operations Conducted Earlier
The Enforcement Directorate had earlier carried out search operations at eight locations connected to the Indian Cooperative House Building Society and ABS Township Private Limited as part of the ongoing investigation.
The case began after complaints were submitted by farmers who alleged their consent had been forged for land development permissions. Investigators now believe the alleged fake documents were instrumental in securing approvals for the large-scale township project in New Chandigarh.