The Directorate of Enforcement (ED) Jalandhar has intensified its investigation into an alleged large-scale real estate fraud linked to fake consent letters used for obtaining Change of Land Use (CLU) permissions for the Suntec City project in Punjab and sources in the investigation have indicated that the probe is now moving beyond developers and may also focus on officials who allegedly helped in clearing approvals despite serious irregularities.
The ED has stated that it is in process to make some more arrests in the case and also to reach the top brass in GMADA and other public officials who allegedly supported Ajay Sehgal in the fraud and received kickbacks in return.
In an official press note issued ED confirmed the arrest of Ajay Sehgal Secretary of Indian Cooperative House Building Society on May 22 in a money laundering case related to submission of forged consent letters for fraudulently obtaining CLU permissions and according to ED the investigation was started on basis of an FIR registered by Punjab Police after complaints were received from farmers. The farmers had alleged that their signatures and consent were forged in documents used for obtaining CLU approval for land meant for a major real estate project.
During investigation ED found that fake consent letters were allegedly prepared for around 30.5 acres of land belonging to 15 different landowners and officials said that forged signatures and fake thumb impressions of farmers were used in the documents and based on these alleged forged documents permissions were granted for the development of Suntec City mega housing project.
ED further claimed that Ajay Sehgal and associated entities used these approvals to carry out large-scale real estate development and apart from residential plots in Suntec City projects such as La Canela residential multi-storey complex and District 7 commercial complex were also allegedly developed using same CLU approvals obtained through fake consent letters.
The central agency also alleged that units in these projects were being sold even before receiving registration and approval from RERA and the matter is being treated seriously as it involves alleged violations related to real estate regulations and sale of properties without mandatory approvals.
Earlier on May 7 ED had conducted raids at eight premises linked to the Indian Cooperative House Building Society and ABS Township Private Limited and during these searches officials claimed that cash amounting to Rs 21 lakh was allegedly thrown from a balcony and the money reportedly scattered on the road below but was later recovered by ED officials during the operation.
ED investigation has also brought attention to alleged irregularities involving GMADA and Department of Town and Country Planning and according to the agency Ajay Sehgal had still not transferred plots reserved for Economically Weaker Sections (EWS) to Estate Officer, GMADA, despite rules requiring the same.
The agency further alleged that despite discussions in Punjab and Haryana High Court only partial CLU for around 30 acres of land was revoked and ED further claimed that action was taken under Section 85 of the Punjab Regional and Town Planning and Development Act instead of Section 90 which allegedly helped Suntec City liquidate its remaining stock and officials believe that the matter may involve wider irregularities in approval process for several real estate projects in Punjab. ED stated that its in-depth investigation has revealed alleged large-scale irregularities in GMADA and Department of Town and Country Planning in granting approvals to Suntec City and other developers.
According to agency illegal gratifications were allegedly exchanged in return for approvals helping certain developers become financially stronger at the cost of poor farmers and landowners whose land records and consent documents were allegedly manipulated and ED has indicated that the investigation is still ongoing and more arrests are likely in the coming days as officials continue to examine financial transactions, approval files, and the role of government officials connected to the case.
