ED summons GMADA chief engineer, ex-official over ₹40-cr waiver to realtor on 1.13-acre food-court site allotment case

Both officers have been directed to appear in person before the investigating officer at the ED’s Delhi office at 11 am and furnish evidence and records related to the investigation under the Prevention of Money-laundering Act (PMLA), 2002

The Enforcement Directorate (ED), Delhi, has summoned Greater Mohali Area Development Authority’s (GMADA) chief engineer Ajay Garg and former chief engineer Sunil Kansal for Thursday as part of a money-laundering probe into the Punjab Housing Department’s alleged waiver of nearly ₹40 crore in non-construction charges and penal interest to a private realtor for a food-court site in Sector 62, Mohali.

The case relates to the allotment of the 1.13-acre site to Delhi Remigate Builders through an auction in September 2015 at a reserve price of ₹32.50 crore. (HT File)

Both officers have been directed to appear in person before the investigating officer at the ED’s Delhi office at 11 am and furnish evidence and records related to the investigation under the Prevention of Money-laundering Act (PMLA), 2002. The summons has been issued under Sections 50(2) and 50(3) of the anti-money laundering law.

Officials familiar with the matter said ED initiated its investigation following a complaint against officials of the Punjab Housing Department and GMADA, alleging that they had waived nearly ₹40 crore in dues and facilitated the allotment of the site despite questions over its feasibility.

The ED has specifically sought a copy of the engineering wing report prepared by GMADA in 2025 regarding Food Court Site No. 4, Sector 62, which appears to be central to the inquiry. The summons also warns that failure to appear or produce the required records could invite penal proceedings under the PMLA and other applicable provisions of the Bharatiya Nyaya Sanhita, 2023.

However, the issue took a fresh turn at the 34th meeting of the GMADA held in February this year, chaired by chief secretary KAP Sinha. The authority found that the demand for nearly ₹40 crore in non-construction charges was not justified, citing the fact that the site was not free from encumbrances, and decided to waive the amount. The waiver had also faced strong objections from the Punjab finance department, but GMADA went ahead with the decision.

The latest engineering assessment, however, differs from the earlier position. Present chief engineer Ajay Garg has recorded that the site was “partially feasible”, raising questions over the basis on which the site was originally auctioned as a feasible commercial site and the subsequent decision to waive the substantial dues.

The authority, relying on a report of the estate office, also decided to fix February 2022 as the date of allotment. It further observed that, from 2016 onwards, estate officers and chief administrators had allegedly failed to comply with provisions of the Punjab Regional Town Planning and Development Act, resulting in delays in recovery of government dues.

Former chief engineer Kansal, when contacted, said he had retired around five years ago and that the complete record was now with GMADA. “I remember that we had auctioned the site after finding it feasible,” Kansal said.

Garg, meanwhile, said, “The site was partially feasible. As far as the waiver of the amount is concerned, I was not part of the authority meeting.”

The ED’s summons now seek documentary evidence and records from the two officials as part of its investigation into the circumstances surrounding the allotment, the engineering assessments and the subsequent waiver of the dues.