ED arrested Ajay Sehgal in a money laundering case linked to alleged forged consent letters for the Suntec City project.
The investigation concerns CLU approvals granted for 30.5 acres of land using allegedly forged signatures and thumb impressions.
ED is probing the role of GMADA and DTCP officials and has indicated more arrests in the case.
The Directorate of Enforcement (ED) in Jalandhar has arrested Ajay Sehgal, secretary of the Indian Cooperative House Building Society, in a money laundering case linked to the alleged submission of fake consent letters for fraudulently obtaining Change of Land Use (CLU) for the Suntec City project from the Government of Punjab.
Sehgal was arrested on 22 May after the ED initiated an investigation on the basis of a Punjab Police FIR registered following complaints from farmers who alleged that their consent had been forged to obtain the CLU.
The case has brought under scrutiny the functioning of the Greater Mohali Area Development Authority (GMADA) and the Department of Town and Country Planning (DTCP), with the ED alleging large-scale irregularities in the grant of approvals to Suntec City and many such developers in Punjab in exchange for illegal gratifications, enriching real estate developers at the cost of poor farmers and landowners.
According to the ED, Sehgal prepared fake consent letters relating to 30.5 acres of land belonging to 15 landowners. The agency alleged that forged signatures and thumb impressions of the landowners were used in the documents submitted for obtaining CLU approval for developing the real estate mega project, Suntec City. On the basis of the fake consent letters, the accused entity/person(s) were granted the CLU approval.
The ED had earlier carried out search operations on 7 May at eight premises linked to the Indian Cooperative House Building Society and ABS Township Private Limited. During the searches, the agency alleged that cash amounting to Rs 21 lakh was thrown from the balcony of liaisoner businessman Nitin Gohel from under a balcony net, scattering on the road below. The cash was later recovered by ED officials.
The agency alleged that, besides residential plots, Sehgal also developed the La Canela residential multi-storey complex and the District 7 commercial complex on the basis of CLU approvals obtained through fake consent letters.
The investigation further revealed that units in these projects were allegedly being sold even before registration and approval from the Real Estate Regulatory Authority (RERA). According to the ED, the accused made sales of more than Rs 200 crore from the illegal unauthorised projects.
The ED also alleged that Sehgal had not transferred plots meant for Economically Weaker Sections to the Estate Officer, GMADA, till date.
According to the agency, contrary to discussions before the Hon’ble High Court, only partial CLU for 30 acres of land had been revoked to help Suntec City liquidate its remaining stock by taking action under Section 85 of the Punjab Regional and Town Planning and Development Act instead of taking action under Section 90 of the Act.
The ED said the role of other senior officials and government authorities in DTCP and GMADA was under investigation. The agency added that it was in the process of making more arrests in the case and reaching the top brass in GMADA and other public officials who allegedly supported Sehgal in the fraud and received kickbacks in return.
