Lid comes off Rs 200-crore ‘land scam’ in Punjab with realtor Ajay Sehgal’s arrest

The Enforcement Directorate (ED) has arrested real estate businessman Ajay Sehgal in a money-laundering case linked to the alleged use of forged consent letters to obtain Change of Land Use (CLU) approvals for high-value real estate projects in Punjab.

Sehgal, who is also the secretary of the Indian Cooperative House Building Society, was arrested by the ED’s Jalandhar unit under the provisions of the Prevention of Money Laundering Act (PMLA).

The case stems from FIRs registered by the Punjab Police following complaints from farmers who alleged that their signatures and consent had been forged to facilitate land conversion for private housing projects.

Fake consent letters

The ED alleged that fake consent letters were prepared for nearly 30.5 acres of land belonging to 15 landowners. Based on these documents, authorities allegedly granted CLU permission for the development of the Suntec City township project in Punjab. Investigators claim the letters carried forged signatures and thumb impressions of farmers and landowners.

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A CLU approval allows agricultural land to be converted for residential, commercial or industrial use and is considered a key regulatory clearance in large real estate developments.

The case

According to the ED, Sehgal and associated firms also developed the La Canela residential complex and the District 7 commercial project using CLUs allegedly obtained through forged documents. The agency further alleged that units in these projects were sold even before obtaining registration and approval from the Real Estate Regulatory Authority (RERA).

Officials estimate that sales worth more than Rs 200 crore were made from what the agency described as “illegal unauthorised projects”.

Other irregularities

The investigation has also brought the spotlight on alleged irregularities within the Greater Mohali Area Development Authority (GMADA) and the Department of Town and Country Planning (DTCP). The ED claimed approvals were granted to developers in exchange for illegal gratification, allegedly benefiting builders at the cost of farmers and landowners.

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As part of the probe, ED officials conducted searches earlier this month within premises linked to the Indian Cooperative House Building Society, ABS Township Private Limited and other associates. During the searches, Rs 21 lakh in cash was allegedly thrown from a balcony at a high-rise building in Kharar and later recovered by officials. Reports also stated that nearly Rs 1 crore was seized during the overall search operation.

Investigation deepens

The ED has reportedly questioned GMADA officials, auditors and senior town-planning personnel as part of the ongoing investigation. It has also summoned records related to approvals granted to projects linked with Suntec City and Altus Space Builders Private Limited.

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Officials said the probe is now focused on tracing money trails, identifying the role of public servants and examining whether senior officials in GMADA and DTCP helped facilitate the alleged fraud in return for kickbacks. More arrests are likely as the investigation progresses.