The Enforcement Directorate (ED) has intensified its probe into an alleged money laundering and corruption network linked to the illegal allotment of industrial plots by officials of the Punjab Small Industries & Export Corporation (PSIEC).
The ED’s Jalandhar Zonal Office conducted searches at 11 premises across Chandigarh, Amritsar, Gurdaspur and Ludhiana on August 4, 5 and 6. The agency also carried out a survey at the PSIEC office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
During the searches, ED officials recovered and seized several incriminating documents and digital devices. The agency also recovered unaccounted cash worth ₹12.15 lakh.
More significantly, the ED has frozen approximately ₹4.01 crore in bank accounts linked to two retired PSIEC officials — Surinder Pal Singh, former Chief General Manager, and Jaswinder Singh Randhawa, former General Manager.
Fake firms, addresses and alleged shell entities
According to the ED investigation, industrial plots meant for technical industries were allegedly allotted to people who had no knowledge or experience of the industries concerned.
The agency found that fake firms and fictitious addresses were allegedly used by private applicants while applying for industrial plots. The ED has alleged that these applicants were able to secure the plots through their close connections with PSIEC officials.
The investigation further revealed that possession of several allotted plots was allegedly not provided within the stipulated period and was delayed for years. In some cases, allotment dates were reportedly shifted forward, allowing payment plans carrying zero interest during the intervening period.
Plots allegedly allotted against bribes
The ED said its enquiries indicated that several allotments were allegedly made in exchange for substantial bribes, which were received directly or indirectly by officials through cash transactions and layered financial arrangements.
Several plots were allegedly allotted in the names of shell entities and fictitious firms and were subsequently sold to third-party buyers at prevailing market rates, allegedly generating substantial proceeds.
The agency also found that some plots originally allotted for establishing industries were allegedly diverted for residential and commercial use, raising further questions over the manner in which the allotments were processed and monitored.
Investigation linked to Vigilance Bureau FIR
The money laundering investigation was initiated on the basis of an FIR registered by the Police Station Vigilance Bureau under provisions of the Prevention of Corruption Act, 1988, and the Indian Penal Code against PSIEC officials and private individuals.
The latest searches and financial seizures indicate that the ED is now examining the alleged flow of funds, the role of officials and private beneficiaries, and the use of shell entities in the industrial plot allotment process.
Further investigation is underway.
