Chandigarh | The Enforcement Directorate (ED) has intensified its investigation into an alleged land fraud and forged documentation case linked to real estate approvals in Punjab. The agency is now examining the role of several senior officials associated with the Town and Country Planning Department, housing authorities, and agencies involved in approving large-scale real estate projects. The case is connected to the high-profile “Suntech City” project in New Chandigarh, where fake landowner consent letters were allegedly used to secure Change of Land Use (CLU) permissions.
According to investigating agencies, the ED recently arrested jeweller-turned-real-estate businessman Ajay Sehgal, who is allegedly linked to the Indian Cooperative House Building Society and associated real estate ventures. Investigators claim forged documents were prepared to show consent from farmers and landowners for the housing project. These documents allegedly carried fabricated signatures and fake thumb impressions.
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Preliminary findings suggest that forged consent letters related to nearly 30.5 acres of land belonging to around 15 landowners were prepared to facilitate approvals for the mega housing project. The ED believes that if the allegations are substantiated, the case could involve not only land fraud but also organised financial crime and money laundering under provisions of the Prevention of Money Laundering Act (PMLA).
Sources indicate that the agency is also scrutinising the possible involvement of officials connected to the Greater Mohali Area Development Authority (GMADA), the Town and Country Planning Department, and the Housing and Urban Development Department. Investigators are attempting to determine how approvals were granted despite the alleged use of forged land documents and whether there were failures or deliberate lapses in the regulatory process.
The investigation has also triggered speculation about possible political links. Sources associated with the probe claim that the role of influential political and administrative figures across different governments is being reviewed. However, no political leader has officially been named in the investigation so far.
The ED is reportedly examining several other real estate projects where authorities allegedly revoked only partial CLU permissions instead of initiating stricter punitive action under the Punjab Regional and Town Planning and Development (PRTPD) law. Investigators suspect that limited action in certain cases may have allowed developers to continue liquidating unsold inventory and safeguard commercial interests.
Another aspect under scrutiny is the alleged absence of FIRs under the Punjab Apartment and Property Regulation Act (PAPRA), 1995, despite reports of major regulatory violations in multiple projects. Investigators are attempting to determine whether enforcement agencies intentionally adopted a lenient approach in handling complaints linked to large real estate ventures.
Sources further suggest that investigators are probing whether influential individuals attempted to get the original FIR quashed. Legal experts believe that if the FIR had been cancelled, it could have significantly weakened the ED’s money laundering investigation, as proceedings under the PMLA rely on the existence of a predicate criminal offence.
Experts dealing with land and financial fraud cases say that forged consent letters, fake powers of attorney, manipulated land records and fabricated ownership claims have become increasingly common in major real estate projects in recent years. In several cases, farmers and landowners reportedly discover much later that documents linked to their land were allegedly used without their knowledge or consent.
Renowned cyber and financial crime expert and former IPS officer Prof. Triveni Singh said that land and real estate frauds are no longer isolated documentation offences but are increasingly becoming part of organised economic crime networks. He stressed that independent legal verification, scrutiny of revenue records, and confirmation of ownership rights are essential before entering into any high-value land transaction.
Officials said the ED is currently analysing banking trails, transaction records, approval documents and communication details related to the project. Investigators are also expected to question additional officials and individuals connected to the approval process as the probe continues to expand.
