The Enforcement Directorate has summoned the Chief Administrator of the Greater Mohali Area Development Authority in connection with its money laundering investigation into alleged irregularities in Change of Land Use approvals granted to two major real estate projects, Suntec City and Altus Space Builders Pvt Ltd.
ED Turns Focus on GMADA Approvals
The summons, issued by the ED’s Jalandhar Zonal Office, directs the Chief Administrator or an authorised representative not below the rank of a gazetted officer to appear at the ED office in Jalandhar on Monday. The notice states that the Chief Administrator’s personal appearance is required to give evidence and produce records in the probe under the Prevention of Money Laundering Act, 2002.
It also warns that failure to comply could invite penal action under the PMLA and relevant provisions of the Bharatiya Nyaya Sanhita, 2023. Proceedings under Section 50 of the PMLA are deemed judicial.
The move has drawn attention in Greater Mohali real estate circles because the investigation has now reached the top level of GMADA and the housing department, which are the authorities responsible for granting the approvals now under scrutiny.
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Records, Transactions and Officials Under Scanner
The ED has sought the complete file containing all approvals granted to Altus Space Builders Pvt Ltd, a list of all officials involved in the approval of projects related to the company, and details of all transactions made by Altus Space Builders to GMADA.
The summons comes barely 10 days after the agency carried out simultaneous searches at around a dozen locations in Mohali, Chandigarh, New Chandigarh and Patiala on May 8. Those searches targeted the Indian Cooperative Housing Building Society, promoter of Suntec City, its office bearers Ajay Sehgal and Suresh Kumar Bajaj, Altus Space Builders Pvt Ltd, ABS Townships Pvt Ltd, Dhir Constructions and its promoter Gaurav Dhir, and alleged middleman Nitin Gohal.
During the raids, the ED seized about Rs 1 crore in cash and incriminating documents. In one incident at a high rise in Mohali, eyewitnesses reportedly saw bags containing Rs 500 notes amounting to Rs 25 lakh being thrown from a ninth floor balcony as ED teams arrived. The cash was later recovered.
Two FIRs Form Basis of Probe
The investigation is based on two Mohali police FIRs. The first, FIR No. 123 of 2022 at Mullanpur police station, alleges that fake consent letters carrying forged signatures and thumb impressions of 15 landowners from Palheri village were used to secure CLU permission for 30.5 acres for the Suntec City project. The society allegedly collected more than Rs 150 crore from members without executing sale deeds, and the proceeds were allegedly diverted to other projects including La Canela and District 7. GMADA later cancelled the society’s licence following litigation in the Punjab and Haryana High Court.
The second, FIR No. 7 of 2024 at Phase 11 police station, relates to allegations by multiple homebuyers that Altus Space Builders sold plots in its Millennium Court project at Nagari village by presenting conditional CLU approvals as final. According to the allegations, the company collected crores of rupees but failed to hand over possession or execute sale deeds. Promoter Mohinder Singh has been declared a proclaimed offender.
The ED has also alleged that Gaurav Dhir of Dhir Constructions, through M S Suncity Projects, purchased the Altus project at an allegedly undervalued Rs 130 crore, against a reported actual worth of over Rs 300 crore, to facilitate money laundering. The agency is now examining the role of certain GMADA officials in granting the allegedly fraudulent CLU permissions and the extent of fees paid, or not paid, by the builders to the authority.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
