ED Jalandhar Arrests Key Accused Ajay Sehgal in Rs 200 Crore GMADA and Fake CLU Scam
JALANDHAR (PUNJAB):
In a major crackdown on real estate fraud and institutional corruption, the Directorate of Enforcement (ED), Jalandhar, has arrested Ajay Sehgal, Secretary of the Indian Cooperative House Building Society. The arrest, executed on Friday, is part of an ongoing money laundering probe into a massive scam involving forged documents used to fraudulently secure a Change of Land Use (CLU) certificate from the Punjab Government for the ‘Suntec City’ mega housing project.
The federal probe was initiated following a Punjab Police FIR, which was filed based on complaints from local farmers who discovered their signatures and thumbprints had been forged.
The Modus Operandi of the Fraud
According to the ED’s investigation, Ajay Sehgal orchestrated the fabrication of fake consent letters concerning 30.5 acres of land belonging to 15 unsuspecting landowners.
Forged Permissions: The accused allegedly forged the signatures and thumb impressions of farmers to show compliance for the mega real estate project.
Illegal Expansion: On the strength of this fraudulently obtained CLU, Sehgal did not just stop at residential plots; he also developed the luxury multi-storey residential complex ‘La Canela’ and a commercial hub named ‘District 7’.
Pre-RERA Violations: The investigation revealed that units within these illegal projects were aggressively marketed and sold to the public even before obtaining mandatory registration and approvals from the Real Estate Regulatory Authority (RERA).
Financial Impact: Through these unauthorised projects, the accused entities have generated illicit sales proceeds exceeding Rs 200 crores.
Evading Rules and Depriving the Underprivileged
The ED’s probe exposed a series of major compliance failures and deliberate violations of urban development laws:
EWS Plot Hoarding: Ajay Sehgal has failed to hand over the legally mandated plots reserved for the Economically Weaker Sections (EWS) to the Estate Officer of the Greater Mohali Area Development Authority (GMADA).
Bureaucratic Collusion: In a questionable move that directly defied high court discussions, government officials only partially revoked a 30-acre CLU. Instead of taking strict penal action under Section 90 of the Punjab Regional and Town Planning and Development Act, officials invoked Section 85—a softer clause deliberately chosen to help Suntec City liquidate its remaining real estate stock.
High-Drama Raids and Flung Cash
The arrest follows extensive search operations conducted by the ED on May 7 across eight premises linked to the Indian Cooperative House Building Society and ABS Township Private Limited.
During the raids, high drama unfolded at the residence of liaison businessman Nitin Gohel. In an attempt to destroy evidence, Rs 21 lakhs in cash was thrown from a balcony. The money tore through a safety net and scattered across the public road below before being swiftly recovered by ED officials.
More Arrests Likely as Probe Focuses on Senior Bureaucrats
The ED is currently investigating the deeper institutional rot within GMADA and the Department of Town and Country Planning (DTCP). The agency has stated that senior public officials and top brass within these departments allegedly accepted bribes and illegal gratifications to fast-track approvals for Suntec City and similar developers at the expense of poor landowners.
More arrests are highly anticipated as the ED tracks the money trail to identify the ultimate beneficiaries of the kickbacks.
