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Money laundering probe against Phagwara sugar mill: Raids uncover incriminating records, says ED
The central agency had carried out raids at eight locations in Punjab and Chandigarh, including the mill premises in Phagwara, a residence at Khurampur village and a gym at Phagwara
The August 20 raids at Phagwara-based Golden Sandhar Sugar mill, previously known as Wahid-Sandhar Sugars Limited, and seven other locations in connection with a ₹95-crore money laundering probe has uncovered incriminating records critical in establishing the financial trail, the Enforcement Directorate said on Friday.
The central agency had carried out raids at eight locations in Punjab and Chandigarh, including the mill premises in Phagwara, a residence at Khurampur village and a gym at Phagwara, owned by Shiromani Akali Dal leader Jarnail Singh Wahid, who was previously co-owner of the mill with England-based NRI Sukhbir Singh Sandhar.
The NRI has not visited India since registration of an FIR by the Punjab Vigilance Bureau (VB) in September 2023. The ED probe stems from this FIR.
The VB had arrested Wahid, his wife Rupinder Kaur and son Sandeep Singh in September 2023, following registration of an FIR under Sections 166 (public servant disobeying law), 177 (knowingly furnishing false information to a public servant), 210 (fraudulently obtaining decree for sum not due), 409 (criminal breach of trust by public servant), 420 (cheating) and 120-B (criminal conspiracy) of IPC and other sections of the Prevention of Corruption Act.
The ED spokesperson said besides recovering crucial documents, establishing the financial trail and uncovering the modus operandi, the agency had also seized a copy of the original agreement of 1933, made by then Maharaja Jagatjit Singh.
“We have also confiscated agreements and documents signed later, indicating involvement of dummy directors,” the official said.
Wahid, a former chairman of Punjab Markfed, remained associated as managing director of Wahid-Sandhar Sugar Mill till 2024. Now, the mill operations are being handled by Rana Sugar Mills Limited, owned by Congress MLA from Kapurthala, Rana Gurjeet Singh, and his son and Sultanpur Lodhi MLA, Rana Inder Partap Singh.
An ED official said the Punjab government had allotted 31.2 acres on lease to Jagatjit Singh Sugar Mills in 1933 for 99 years, on the condition that the land will not be transferable and mortgaged without prior approval.
In 2000, Oswal Agro Mills Limited, a company of Jagatjit Singh Sugar Mills, signed a pact with Wahid-Sandhar Mills and sublet the lease to it. “However, Wahid Sandhar Sugars Limited, after acquiring the land, breached the conditions and mortgaged and sold the chunks of land,” the official said.
During the ED investigation, it came to fore that the Wahid Sugar Mill mortgaged 31.3 acres for ₹93.94 crore. Moreover, the mill administrators also sold 6 kanal and 4 marlas of government land in 2019.
The central agency said Wahid Sandhar Sugar Limited caused loss to the state government and wrongfully gained benefits for themselves by such criminal activities.
