A major money laundering investigation linked to alleged change of land use (CLU) fraud in Punjab’s real estate sector has intensified after the Greater Mohali Area Development Authority (GMADA) submitted crucial records to the Enforcement Directorate (ED). The probe revolves around alleged irregularities in land-use approvals granted to projects associated with Altus Space Builders Private Limited and Suntec City, both of which are under the scanner for suspected financial and documentation-related violations.
GMADA hands over files to ED
According to officials familiar with the investigation, a team of GMADA officers visited the ED’s regional office in Jalandhar and handed over documents sought by the federal agency. The ED had earlier summoned GMADA chief Sandeep Kumar, a 2015-batch IAS officer, or directed the authority to depute a gazetted officer to furnish records connected to the ongoing investigation under the Prevention of Money Laundering Act (PMLA).
Sources said the records submitted include files related to approvals granted to Altus Space Builders, transaction details between the company and GMADA, and documentation linked to various real estate projects initiated between 2019 and 2025. Officials associated with the investigation stated that the agency has seized records concerning Altus Space since its inception and is now examining the approval process and financial trail connected to the projects.
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The ED investigation stems from a police FIR registered on February 1, 2024, at Phase 11 police station in Mohali. The case was filed under provisions related to criminal breach of trust, cheating and criminal conspiracy against Altus Space Builders Pvt Ltd and several individuals associated with the company, including Mohinder Singh, Harpreet Singh Sran, Jaswinder Singh, Herdev Singh Sran and Narinder Singh.
According to the FIR, multiple homebuyers alleged they were misled into booking residential plots in Altus Space’s “Millennium Court” project located at Nagiari village in Mohali. Buyers claimed they purchased plots at nearly ₹10,500 per square yard, believing the project had received final CLU approval from GMADA. However, investigators later found that the approval was allegedly conditional and was subsequently cancelled because of unpaid dues owed by the developer to the state government.
Investigators suspect that prospective buyers were allegedly not informed about the conditional nature of the CLU clearance while booking plots. Police documents reportedly state that the company concealed material facts related to the project’s regulatory status, leading buyers to invest substantial sums under allegedly misleading assurances.
Suntec City probe, forged consent letters alleged
A parallel investigation involving Suntec City is also underway. In that case, police alleged that fake consent letters related to nearly 30.5 acres of land were prepared and used to collect more than ₹150 crore from members without execution of valid sale deeds. ED officials said records connected to Suntec City would be examined separately as part of a segmented investigation strategy.
Earlier this month, the ED conducted searches at 12 locations across Chandigarh and Mohali linked to several builders, developers and alleged middlemen associated with the case. Raids were carried out at premises connected to Ajay Sehgal, ABS Townships, Altus Space Builders, Dhir Constructions and others. During the searches, investigators reportedly recovered nearly ₹1 crore in cash.
Officials also claimed that approximately ₹21 lakh was allegedly thrown from the ninth floor of Western Towers in Kharar during the raids by persons linked to the accused entities. The searches further targeted alleged intermediaries identified as Nitin Gohal and Pritpal Singh Dhindsa, who are suspected of facilitating parts of the financial and documentation process under scrutiny.
Forensic financial checks and wider implications
Experts tracking real estate fraud cases say the investigation highlights increasing concerns over misuse of CLU permissions, forged land-related documentation and misleading project approvals in rapidly expanding urban markets. Legal experts believe the case could have wider implications for regulatory oversight in Punjab’s real estate sector, particularly regarding the verification of land-use approvals and compliance with urban development norms.
Officials indicated that forensic examination of financial transactions, project approvals and supporting documentation is continuing, and additional action may follow depending on the findings of the ongoing investigation.
