The Enforcement Directorate (ED) has widened its investigation into alleged irregularities in Punjab's real estate sector by seeking records related to a waiver of over Rs 40 crore granted to private realtor Remigate, which is developing a food court in Mohali. The waiver, including penal interest, was approved after the Greater Mohali Area Development Authority (GMADA) failed to provide basic amenities at the 1.13-acre site allotted to the builder.
ED Summons Officials, Seeks Digitized Records
The ED has directed GMADA officials to submit the complete record in digitised form. Officials were summoned to Delhi in connection with the agency's probe into alleged irregularities in change of land use (CLU) clearances granted to private developers. The ED has also requested details of another project promoted by Remigate.
Background of the Waiver
After receiving the waiver, the realtor reportedly filed an appeal before the Secretary, Housing and Urban Development, seeking additional relief. Housing Department officials stated that the site, allotted to Remigate Builders nine years ago for a food court in Sector 62, Mohali, was not handed over in an encumbrance-free condition despite repeated representations by the allottee. Instead, GMADA issued a show-cause notice over non-payment of pending dues.
Sources said the site was auctioned in September 2015 at a reserve price of Rs 32.50 crore. The allottee paid 20 per cent of the amount and the first instalment of Rs 9.87 crore. The department later acknowledged that deficiencies on the part of the Estate Office delayed execution of the commercial project.
Regulatory Violations and Revised Allotment
Based on an Estate Office report, the authority revised the effective date of allotment to February 2022. It also observed that, from 2016 onwards, estate officers and chief administrators violated provisions of the Punjab Regional Town Planning and Development Act, delaying recovery of dues.
Regulatory Loophole Exploited by Developers
The ED has uncovered an alleged regulatory loophole that developers are exploiting to alter layout plans by using provisions under the Real Estate Regulatory Authority. Agency sources claimed that, unlike Tamil Nadu and Maharashtra, where mid-project layout changes are tightly regulated, Punjab's mechanism has allegedly been misused to benefit developers at the expense of homebuyers.
Link to Money Laundering Probe
The issue came to light during the ED's money laundering probe into the alleged fraudulent issuance of CLU clearances for the Suntec City project in Mullanpur. The investigation has already led to the arrest of Ajay Sehgal, promoter and secretary of the Indian Cooperative House Building Society (ICHBS).
