The Enforcement Directorate (ED) has requested a comprehensive record of the Chandigarh Royale City project from the Greater Mohali Area Development Authority (GMADA) amid allegations of payment default. The agency is investigating potential money laundering and fraud linked to the project.
Background of the Investigation
A few days ago, the ED conducted raids at multiple premises associated with Chandigarh Royale City Promoters Pvt Ltd (CRCPL) and the Royale Estate Group in Chandigarh, Zirakpur, and other parts of Punjab. The promoters of these companies, Praveen Kansal and Neeraj Kansal, were arrested on May 30 from Delhi and have been remanded to judicial custody.
GMADA's Role and Document Requests
According to sources, GMADA has been asked to provide a detailed requisition for documents and clarifications regarding the change of land use (CLU) and the colony development licence granted to Chandigarh Royale City Private Limited for a residential project in Dera Bassi's Karala village. The investigation is focused on long-standing disputes between the promoter and GMADA over external development charges and payments.
Financial Discrepancies and Legal Actions
The company had earlier claimed to have deposited around Rs 32.76 crore while alleging discrepancies in the demands made by the authority. In July 2025, the Punjab Police registered a case involving allegations of fraud, criminal conspiracy, and submission of dishonoured cheques amounting to Rs 32.67 crore. Subsequently, the ED raided premises linked to the Royale Estate Group and promoters in Chandigarh, Mohali, and other areas under the Prevention of Money Laundering Act (PMLA). Investigators are examining the alleged diversion of project funds, along with outstanding dues to GMADA.
Ongoing Scrutiny
A source indicated that officials from GMADA's accounts branch and the Department of Town and Country Planning are regularly being called to the ED office for further clarifications and document submissions. The investigation is ongoing, and more details are expected to emerge as the probe progresses.
