The Enforcement Directorate (ED) has arrested Jaswinder Singh Randhawa, former general manager (personnel) of the Punjab Small Industries and Export Corporation (PSIEC), in a money laundering case linked to the alleged illegal allotment of industrial plots that caused a loss of ₹8.73 crore to the state exchequer.
Randhawa was produced before a special Prevention of Money Laundering Act (PMLA) court on Friday and was sent to the ED custody till November 2 for further interrogation.
The ED investigation stems from an FIR registered by the Punjab Vigilance Bureau (VB) on March 8, 2024, against six senior PSIEC officials for allegedly abusing their official positions and facilitating the illegal allotment of valuable industrial plots to their relatives, friends and acquaintances.
In August, the ED conducted searches at 11 locations in Punjab, including the PSIEC headquarters in Mohali, as part of its investigation.
According to ED officials, PSIEC officials allegedly manipulated the possession process by deliberately delaying the handing over of industrial plots on various pretexts, including the presence of debris and electrical wires at the sites.
The officials allegedly treated the intervening period as a ‘zero period’ and shifted the allotment dates forward by several years, allowing allottees to benefit from interest-free payment schedules. The plots, initially allotted at nominal rates, were subsequently sold at prevailing market prices, with the difference allegedly collected in cash, generating proceeds of crime, the ED investigation found.
{{/usCountry}}The officials allegedly treated the intervening period as a ‘zero period’ and shifted the allotment dates forward by several years, allowing allottees to benefit from interest-free payment schedules. The plots, initially allotted at nominal rates, were subsequently sold at prevailing market prices, with the difference allegedly collected in cash, generating proceeds of crime, the ED investigation found.
{{/usCountry}}The VB had arrested PSIEC chief general manager (estates) SP Singh and general manager (personnel) Jaswinder Singh Randhawa on March 8, 2024. Both were later released on bail. Estate officer Amarjeet Singh Kahlon, senior assistant Vijay Gupta, consultant Darshan Garg and sub-divisional engineer Savtej Singh were also booked in the case.
The FIR was registered under various provisions of the Indian Penal Code, including Sections 420, 409, 467, 468, 471 and 120-B, along with Sections 7(2), 8, 12 and 13(2) of the Prevention of Corruption Act.
ED suspects deep-rooted nexus
The ED investigation has reportedly uncovered a deep-rooted nexus involving former PSIEC officials and beneficiaries of the illegal allotments.
According to the agency, one former general manager allegedly received a bribe of ₹2 crore for transferring an industrial plot from a benamidar to a prospective industrialist.
In another instance, two former officials allegedly purchased industrial plots in the names of benamidars and subsequently sold them at market rates while depositing the original allotment price with the PSIEC.
The ED also conducted survey action under Section 16 of the PMLA at the PSIEC office, where the officials concerned were employed and allegedly facilitated illegal allotments, resulting in financial losses to the state exchequer.
VB probe exposed irregularities
The VB’s investigation found that the PSIEC had allegedly violated prescribed procedures while allotting industrial plots.
The probe revealed that the corporation’s policy did not provide for zero-interest facilities. However, a noting dated August 1, 2000, by the corporation’s managing director and a resolution passed by its board of directors on February 8, 2005, reportedly provided for such a waiver. Neither order, however, had been notified by the state government.
The investigation further revealed that one official allegedly allotted plots in the names of close relatives, friends and other known persons, while another misused his official position to manipulate allotment and possession records and facilitate allotments to the relatives and acquaintances of colleagues.
The VB also found that revenue on 14 industrial plots at the Industrial Focal Point in SAS Nagar was allegedly waived. The occupants subsequently earned substantial profits by selling the plots through property dealers at prevailing market rates.