The Enforcement Directorate’s (ED) Jalandhar office on Wednesday conducted search at eight locations across Punjab and Chandigarh in connection with a money laundering investigation against Wahid Sandhar Sugars Ltd and related entities and their people.
The sugar mill is connected to Shiromani Akali Dal leader Jarnail Singh Wahid.
The ED initiated the investigation on the basis of a First Information Report (FIR) lodged by the Vigilance Bureau of Punjab.
During the investigation it was found that Wahid Sandhar Sugars had misused the ‘muafi’ land which was initially allotted by Jagat Jit Singh, erstwhile ruler of Kapurthala, in the year 1933.
The ‘muafi’ land was intended to be used for running a sugar mill as per the conditions of allotment and mortgage or further sale of the said land was not allowed, the ED said in a statement.
Wahid Sandhar Sugars acquired the rights to run the sugar mill on the ‘muafi’ land in 2000 and the company breached the conditions and mortgaged and sold that land.
“By such criminal activities they caused loss to the state government and wrongfully gained benefits for themselves. Proceeds of crime generated out of such criminal activities are under investigation,” said the ED.
The estimated proceeds of crime are approximately Rs 95 crore, it added.
The ED searches come in the wake of the Vigilance Bureau lodging a case against Jarnail Singh and his family two years ago for selling that part of the sugar mill's land which belonged to the government.
Wahid, his wife Rupinder Kaur and son Sandeep Singh were earlier arrested by the Vigilance Bureau in 2023. Jarnail Singh also faced an alleged money laundering case in 2003.
The case pertained to the investment made by Wahid’s then NRI partner Sukhbir S Sandal in the sugar mill.
The mill is now being run by Rana Sugar Mills of Sultanpur Lodhi legislator and Congress leader Rana Inder Partap Singh.