ED Investigates Officials In Punjab CLU Approval And Land Fraud Case
ED expands Punjab land fraud probe to senior officials and departments.
The Enforcement Directorate (ED) is intensifying its investigation into a multi-crore land fraud case linked to real estate developments in Punjab, following the arrest of businessman Ajay Sehgal, a jeweller-turned-developer. The case centres around alleged forgery of landowners’ consent letters used to secure Change of Land Use (CLU) approvals for large housing projects, including the Suntech City development in New Chandigarh. The agency is now widening its probe to include several senior bureaucrats and officials connected to land clearance and urban planning approvals.
According to officials, the ED is closely examining the roles of senior functionaries in the Department of Town and Country Planning, including the Director, Chief Town Planner, and other officials involved in granting CLU permissions. The Housing and Urban Development Department has also come under scrutiny. Investigators suspect that procedural decisions and approvals may have facilitated questionable real estate clearances, raising concerns about systemic irregularities in the approval process for major housing projects in the region.
The probe is also extending to the Great Mohali Area Development Authority (GMADA), where officials may face questioning or possible arrests in the coming days. The agency is reviewing multiple projects where CLU permissions were allegedly revoked only partially under Section 85 of the Punjab Regional and Town Planning and Development (PRTPD) Act. Investigators believe stricter action under Section 90 may have been avoided, potentially allowing developers to continue selling inventory and safeguarding commercial interests.
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ED sources also indicated that the investigation is not limited to bureaucratic conduct but may involve influential political figures across different regimes, including a senior functionary linked to the current ruling establishment. The agency is further examining why First Information Reports were not registered under the Punjab Apartment and Property Regulation Act (PAPRA), 1995, despite alleged large-scale violations. There are also internal discussions regarding attempts by certain stakeholders to seek quashing of FIRs that form the basis of the money laundering probe under the Prevention of Money Laundering Act (PMLA).
At the centre of the investigation is Ajay Sehgal, who is accused of orchestrating forged consent letters for approximately 30.5 acres of land belonging to 15 landowners. These allegedly fabricated documents, bearing forged signatures and thumb impressions, were used to obtain CLU approval for Suntech City. Sehgal, who has been active in the Chandigarh-Mohali-New Chandigarh real estate market and linked to projects such as La Canela and District 7, was arrested after earlier ED searches at multiple premises connected to his firms and associated entities.
The ED’s wider investigation aims to trace the flow of funds and determine whether regulatory lapses and administrative decisions enabled large-scale manipulation in land-use approvals. Officials said the probe will continue to expand as more evidence is reviewed, with potential further arrests not ruled out in the coming days.
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