Himachal govt suspects ₹300-crore benami violations in Chester Hills project

Revenue minister Jagat Singh Negi flags potential money laundering in Solan land deals as RERA penalises developers ₹70 lakh for irregularities.

For the first time, the Himachal Pradesh government has acknowledged potential benami (proxy) transactions in the Chester Hills project in Solan, aimed at circumventing Section 118 of the HP Tenancy and Land Reforms Act, 1972.

The Chester Hills project in Solan is currently embroiled in a high-profile controversy and had led to a bureaucratic tussle with allegations of a multi-crore “land scam” involving 275 bighas. (HT Photo)

Revenue minister Jagat Singh Negi said on Monday that preliminary investigations suggest violations involving about 150 bighas of land valued at up to ₹300 crore, though he cautioned that definitive conclusions must await the final report.

The Chester Hills project in Solan is currently embroiled in a high-profile controversy and had led to a bureaucratic tussle with allegations of a multi-crore “land scam” involving 275 bighas of land with accusations of “benami” dealings and violations of Section 118 of the HP Tenancy and Land Reforms Act.

A prior inquiry by the Solan sub-divisional magistrate (SDM) concluded that the Chester Hills-2 and Chester Hills-4 projects were deliberately structured to bypass Section 118, which prohibits non-agriculturists from owning agricultural land without state sanction.

The SDM said that the individuals listed as owners lacked the financial means to purchase the 275 bighas involved, hinting at benami deals and recommending a probe by the Enforcement Directorate or income tax department. There are now allegations that chief secretary (CS) Sanjay Gupta stalled action on this report.

Speaking to HT, Negi highlighted “clear procedural concerns” in the initial inquiry. He questioned the role of senior bureaucrats, asserting that the then acting chief secretary Sanjay Gupta lacked the authority to unilaterally frame charges. Negi confirmed he overruled those orders to ensure a commission of inquiry proceeds legally.

“If the local individual in whose name the land was acquired lacks the income to purchase such a tract, it constitutes money laundering,” Negi said, adding that Solan DC Manmohan Sharma’s investigation is nearing completion.

The probe is also scrutinising orders issued by the CS to halt previous investigations. Gupta faces allegations of purchasing land in the area himself; while a police complaint has been lodged, no formal case is registered. However, Gupta, while claiming to be innocent, had said they are part of an “orchestrated conspiracy” by a rival lobby of officers to tarnish his reputation.

Negi maintained that RERA and the town and country planning (TCP) department are conducting separate inquiries into the matter.

Simultaneously, the HP Real Estate Regulatory Authority (RERA) has imposed a ₹70 lakh fine on the project promoters for serious irregularities.

RERA’s investigation found the developers failed to maintain proper accounts and expenditure records as required under Section 4(2)(l)(D). RERA observed that the listed land purchasers appeared to be “nominal or front owners,” noting that such extensive acquisitions were “highly improbable” given their modest declared incomes, reinforcing suspicions of benami arrangements and unaccounted financial inflows.

What is Chester Hills issue

Registered with the HP Real Estate Regulatory Authority (RERA) in 2019, Chester Hills is a luxury mega housing project being developed by M/s NG Estates at Mauza Ber Khas and Lower Bazar in Solan

Controversy erupts after RERA gets multiple complaints from individual homebuyers and Allottees Association in 2025, regarding Chester Hills-2 and Chester Hills-4

They alleged violation of Section 118 by using a local agriculturist to bypass the ban on non-locals buying land in Himachal, failure to upload revised approvals, deficiencies in provision of essential services, and handing over possession without an occupancy certificate

Complaints forwarded to Solan sub-divisional magistrate in September 2025.

SDM’s finding names Hans Raj, a Himachali agriculturist, as the record owner of Chester Hills-2 and Chester Hills-4 project land pointing that individuals listed as owners lacked financial means to purchase the property, thus hinting at benami deals

Allegations are that then acting chief secretary Sanjay Gupta stalled action on this report with Gupta claiming to be innocent