Money laundering case: ED arrested Punjab builder Ajay Sehgal in Suntec City project

JALANDHAR: The Enforcement Directorate (ED) on Saturday night arrested builder Ajay Sehgal in a money laundering case linked to the alleged submission of fake consent letters for fraudulently obtaining Change of Land Use (CLU) approvals. Sehgal is the secretary of the Indian Cooperative House Building Society.He was produced before a Mohali court, which remanded him to ED custody till May 27.Earlier, the ED had conducted search operations on May 7 at eight premises linked to the Indian Cooperative House Building Society and ABS Township Private Limited. During the searches, cash worth Rs 21 lakh was allegedly thrown from a balcony and scattered on the road below after hitting a safety net. The cash was later recovered by ED officials.In a statement issued here, the ED said it was in the process of making more arrests in the case and was also investigating the involvement of senior GMADA officials and other public servants allegedly linked to the fraud and accused of receiving kickbacks.The ED began its investigation on the basis of an FIR registered by Punjab Police following complaints from farmers alleging that their consent had been forged to obtain CLU permissions.According to the agency, the investigation revealed that Ajay Sehgal allegedly prepared fake consent letters related to 30.5 acres of land belonging to 15 landowners. Using these documents, the accused allegedly secured CLU approval for the development of a mega real estate project named ‘Suntec City’. The ED claimed that the consent letters carried forged signatures and thumb impressions of the landowners.The agency further alleged that, apart from 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 ED also claimed that units in these projects were allegedly sold before obtaining registration and approval from the Real Estate Regulatory Authority (RERA).Officials said the investigation further revealed that plots meant for the Economically Weaker Sections (EWS) had not yet been transferred to the Estate Officer of the Greater Mohali Area Development Authority (GMADA).The agency also alleged that, despite discussions before the Punjab and Haryana High Court, only partial CLU for 30 acres of land was revoked. According to the ED, this allegedly helped Suntec City liquidate its remaining stock by invoking Section 85 of the Punjab Regional and Town Planning and Development Act instead of taking action under Section 90 of the Act.The Directorate further stated that its investigation had uncovered large-scale irregularities within GMADA and the Department of Town and Country Planning in granting approvals to Suntec City and other developers. The agency alleged that illegal gratifications were exchanged, benefiting real estate developers at the expense of farmers and landowners in Punjab.