Chandigarh: The Enforcement Directorate (ED) has made a significant breakthrough in its ongoing money laundering probe into a large-scale alleged change of land use (CLU) scam in Punjab’s real estate sector, arresting a key real estate promoter linked to major housing developments.
The case is estimated to involve fraudulent transactions worth around ₹150 crore, with investigators now widening their probe to include possible involvement of urban development officials.
Arrest of Key Secretary and Document Forgery
The arrested accused, Ajay Sehgal, is identified as the main promoter of the Suntec City project developed under the Indian Cooperative Housing Building Society (ICHBS). Sehgal was taken into custody after being questioned at the ED’s Jalandhar regional office and is expected to be produced before a special PMLA court in Mohali. Authorities allege that he played a central role in obtaining CLU approvals through forged documentation and manipulated consent records.
The ED investigation is focused on alleged irregularities in CLU permissions granted for large-scale projects linked to Suntec City and Altus Space Builders Private Limited. According to officials, the probe has revealed that economically weaker section (EWS) housing obligations were not fulfilled, as required plots were never transferred to the estate authorities, raising serious regulatory concerns.
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Unauthorized Sales and Generation of Proceeds of Crime
Investigators have alleged that fake consent letters were created for approximately 30.5 acres of land belonging to multiple landowners. These documents reportedly contained forged signatures and thumb impressions, which were used to secure CLU approvals for developing the Suntec City township project. Based on these approvals, the accused group allegedly collected over ₹150 crore by enrolling members into the society without executing proper sale deeds.
The agency has also found that several residential and commercial developments, including La Canela and the District-7 commercial complex, were executed using permissions allegedly obtained through fraudulent means. All units in these projects have since been sold, generating what the ED describes as “proceeds of crime.”
Officials further stated that the investigation has also extended to possible irregularities in RERA approvals for the District-7 project, indicating that regulatory oversight may have been bypassed at multiple stages.
Cash Recoveries and Bureaucratic Scrutiny
During searches conducted earlier this month, ED teams recovered nearly ₹1 crore in cash from various premises linked to the accused and associated firms. In one incident, investigators also reported recovery of ₹21 lakh allegedly thrown from a high-rise building in an attempt to dispose of evidence. Several middlemen and associated entities are also under scrutiny as part of the expanding probe.
The ED has additionally questioned senior officials of the Greater Mohali Area Development Authority (GMADA), seeking detailed records related to project approvals, land conversions and transactions involving Altus Space Builders. The agency is examining whether public officials played a role in facilitating approvals in exchange for illegal gratification.
Asset Undervaluation and Original Litigation
According to investigators, one of the key aspects under examination is the alleged undervaluation of assets during a project transfer, where a firm reportedly purchased a major project for ₹130 crore while its estimated value exceeded ₹300 crore. This discrepancy is being investigated as a potential method used for laundering proceeds of crime.
The case has also drawn attention due to alleged connections between developers and politically influential individuals, prompting the agency to expand its net further into administrative and policy-level clearances granted for the projects.
The original FIR in the matter was registered in 2022 following complaints of fraud by landowners and homebuyers, who alleged that they were deceived through forged consents and illegal documentation. Charges invoked include cheating, forgery, criminal conspiracy and use of forged documents as genuine.
Officials have indicated that further arrests are likely as the investigation progresses. The ED is now compiling financial trails, approval records and land ownership documents to reconstruct the full scope of the alleged fraud.
With multiple agencies now reviewing approvals and financial flows, the case is expected to widen further, potentially exposing deeper irregularities in real estate approvals and land conversion processes across the region.
