The Enforcement Directorate (ED), Jalandhar, arrested Punjab-based builder Ajay Sehgal on Friday night in a money laundering case connected to forged consent letters used to obtain change of land use (CLU) permissions for a real estate project in Mohali. Sehgal, who serves as secretary of the Indian Cooperative House Building Society, was produced before a Mohali court on Saturday and remanded in ED custody until May 27.
Case Background
The case gained attention earlier this month after a video showing cash being thrown from a balcony during ED raids went viral on social media. During searches conducted on May 7 at eight premises linked to Indian Cooperative House Building Society and ABS Township Pvt Ltd, ED officials recovered Rs 21 lakh in cash that had allegedly been tossed from a balcony in Mohali.
ED Allegations
In a statement, the ED said it is investigating the role of Greater Mohali Area Development Authority (Gmada) officials and other public servants who allegedly supported the fraud and received kickbacks. The agency indicated that more arrests are likely.
The investigation stems from a Punjab Police FIR filed based on complaints from farmers who alleged their consent was forged to secure CLU permissions. According to the ED, Sehgal prepared fake consent letters for 30.5 acres of land belonging to 15 landowners to obtain CLU for the 'Suntec City' mega housing project. The agency alleged that signatures and thumb impressions of the landowners were forged.
Additional Developments
Besides residential plots, Sehgal allegedly developed the La Canela residential complex and the District 7 commercial complex using the same CLU permissions. The ED also alleged that units were sold before registration and before obtaining RERA approvals. Furthermore, the agency claimed that Sehgal failed to transfer plots reserved for economically weaker sections to Gmada.
The ED stated that investigations have revealed 'large-scale irregularities' within Gmada and the Department of Town and Country Planning in granting approvals to developers in exchange for illegal gratification.
