The Enforcement Directorate (ED) on Thursday conducted search and seizure operations against two Punjab-based real estate groups in connection with alleged fraudulent change of land use (CLU) approvals, and cheating of landowners and homebuyers, with dramatic scenes unfolding in Kharar where bundles of cash were seen being thrown from a flat during the raid.
After the searches, which lasted several hours, the ED claimed one of the realtors whose premises were searched, Gaurav Dhir of Dhir Constructions, was a "close associate" of a senior AAP leader, Aman Arora.
Arora is the Punjab unit president of AAP and a senior minister in the Mann government. Arora denied any links to the real estate companies. "I have come to know from media reports that my name has figured in ED raids. My entire life was, is and will always be above board. I am not going to be bowed down by such false propaganda," he said.
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It is alleged that in an attempt to facilitate money laundering, Dhir, through his entity Suncity Projects, acquired Altus project for approximately Rs 130 crore after allegedly undervaluing it by Rs 170 crore. The matter is being investigated.
Interestingly, the ED first conducted a raid on businessman Nitin Gohal at his Kharar residence early on Thursday morning. In a dramatic development, ED officials alleged that cash amounting to Rs 21 lakh was thrown from the balcony of his flat during the commencement of search proceedings. Residents of the housing society reportedly said the cash, packed in two bags, was thrown from the ninth-floor flat and they were shocked to see bundles of currency notes flying overhead in the morning.
According to the ED, the cash fell onto the road below after being tossed from beneath a balcony net and was subsequently recovered by officials. Though no official statement was issued by the government either denying or accepting the allegations, Opposition leaders, including Congress MP Sukhjinder Singh Randhawa and SAD leader Bikram Majithia, alleged Gohal was an aide of a senior Punjab government functionary.
Earlier in the day, Chief Minister Bhagwant Mann said his government and party had nothing to do with the raids or the persons whose premises were searched.
Punjab BJP president Sunil Jakhar said, "The ED's action has exposed the truth behind claims of the so-called honest governance. Despite CM Mann's claims of false charges, the name of the state president of the party said to be of the common people has come up in transactions worth crores. This is just the beginning; many more curtains are yet to be lifted. After the policy of 'Sabka Saath, Sabka Vikas', it now seems the time has also come for 'Sabka Hisaab'."
The ED claimed that apart from Gohal, it also searched premises linked to an alleged middleman, Pritpal Singh Dhindsa, who helped secure political patronage and protection for the projects. The agency claimed to have recovered incriminating documents indicating alleged interference by private individuals in government functioning in Punjab.
The searches were carried out in relation to projects linked to Suntec City promoted by Indian Cooperative Housing Building Society and Altus Space Builders Pvt Ltd in Mohali district. According to the ED, its investigation revealed that officials and promoters allegedly obtained CLU permissions for developing the Suntec City project using forged consent letters of landowners.
It is alleged that Suresh Kumar Bajaj and Ajay Sehgal prepared fake consent letters relating to nearly 30.5 acres of land belonging to 15 landowners. The signatures and thumb impressions on the documents were allegedly forged to secure CLU approval from authorities. Based on these allegedly fraudulent approvals, the society developed Suntec City project and collected more than Rs 150 crore by enrolling members into the housing society without executing sale deeds, the ED claimed.
"The Punjab Police had earlier registered FIR No. 123 dated November 19, 2022, at Mullanpur police station, SAS Nagar, under Sections 120B, 420, 467, 468, 471 and 472 of the IPC in connection with the alleged forgery and conspiracy," the ED statement said.
The ED further alleged that Ajay Sehgal also developed La Canela residential multi-storey complex and District 7 commercial complex using the same CLU approvals allegedly obtained through forged consent documents. According to the agency, all units in the two projects were sold, generating what it described as "proceeds of crime."
The agency said it was also examining alleged irregularities in RERA approvals linked to District 7 commercial complex.
The ED stated that several affected landowners and buyers had approached the Punjab and Haryana High Court, following which the Greater Mohali Area Development Authority (GMADA) cancelled the licence granted to the housing society.
The cancellation reportedly came amid allegations that mandatory landowner consent procedures had been violated during the approval process.
In a separate but related investigation, the ED searched premises linked to Altus Space Builders Pvt Ltd after multiple complaints were filed before RERA, police authorities and consumer forums.
According to investigators, buyers alleged that the company falsely represented that its project had obtained final CLU approval from GMADA while concealing the fact that the approval was conditional and was later cancelled.
The ED said the Punjab Police registered FIR No. 07 dated February 1, 2024, at Phase-11 police station, SAS Nagar, under Sections 316, 318(2) and 61 of the BNS against Altus Space Builders Pvt Ltd and its director. The agency also said a non-bailable warrant had earlier been issued against promoter Mohinder Singh under the Negotiable Instruments Act and that he had been declared a proclaimed offender.
"Overall, approximately Rs 1 crore in cash was seized during the searches conducted across multiple premises. Further investigation into the alleged fraud, money laundering trail, political connections and diversion of funds is ongoing," the ED said.