E-Paper
PSIEC plot allotment: ED seizes documents, digital devices in searches linked to ex-minister Arora
The searches, which began on November 2, continued for more than 48 hours and included Arora’s residence in Hoshiarpur, Shivam Hospital in the town and premises linked to several real estate companies in Chandigarh and Mohali
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The Enforcement Directorate (ED) has seized mobile phones, incriminating documents, property-related papers, records concerning Punjab Small Industries and Export Corporation (PSIEC) industrial plots and digital devices during searches at 14 locations in Punjab and Chandigarh in connection with a money-laundering investigation against former Punjab industries and commerce minister Sunder Sham Arora, his son Parteek Arora and their alleged associates.
The searches, which began on November 2, continued for more than 48 hours and included Arora’s residence in Hoshiarpur, Shivam Hospital in the town and premises linked to several real estate companies in Chandigarh and Mohali. The companies under scrutiny include SRG Builders and Promoters Pvt Ltd, GRG Developers and Promoters LLP, and Gulmohar Township India Pvt Ltd, along with premises associated with their promoters, directors and associates. The agency also froze certain bank lockers during the operation.
In a statement, the ED said its investigation was initiated on the basis of an FIR registered by the Punjab Vigilance Bureau (VB) under the Prevention of Corruption Act. The FIR concerns allegations of amassing assets disproportionate to known sources of income and offering a bribe to a senior VB officer to settle pending inquiries.
According to the agency, Arora was arrested on October 15, 2022, after allegedly offering a bribe of ₹1 crore to the officer. He was caught red-handed in Zirakpur while handing over ₹50 lakh as an advance payment.
The ED alleged that Arora, during his tenure as industries and commerce minister from March 2017 to September 2021, exercised direct control over the functioning of the PSIEC. During this period, he allegedly extended undue favours to private real estate players in the transfer of high-value industrial plots and acquired stakes in real estate companies in the name of his son.
One of the key transactions under investigation concerns industrial Plot No. A-32 in Phase 8, Mohali, originally allotted by PSIEC to JCT Electronics. The plot was transferred to GRG Developers for ₹90.56 crore through an auction conducted by ARCIL in February 2020.
The ED said PSIEC was entitled to 50% of the sale proceeds as an unearned increase, apart from enhanced land cost and transfer charges under the lease agreement. However, these dues were allegedly not fully paid. Even after the tripartite agreement between the PSIEC, ARCIL and GRG was cancelled in August 2021, no steps were reportedly taken to cancel the lease or resume possession of the plot.
According to the agency, Arora approved proposals for post-facto clearance concerning the calculation of unearned increase and enhanced charges and was directly involved in the matter. Bank records allegedly indicate that he also invested in the purchase of the plot through his son Parteek Arora.
The investigation further revealed that the industrial plot was subdivided and sold to third parties even before possession and the necessary approvals from the PSIEC and the Real Estate Regulatory Authority (RERA) were obtained. The ED alleged that this defeated the objective of setting up an industrial unit on the allotted land and generated proceeds of crime through the sale of subdivided plots.
The agency has also examined Parteek’s acquisition of a 35% stake in SRG Builders and Promoters Pvt Ltd in September 2020. The company is described as a sister concern of GRG Developers and Promoters LLP, associated with brothers Deepak Garg and Devi Dayal Garg. Parteek is also a partner in Aggarwal Buildtech, SS Developers and Land Developers.
Another transaction under scrutiny involves Gulmohar Township India Pvt Ltd and M/s Signify Innovations India Ltd. The ED said Gulmohar Township began making payments to Signify Innovations in August 2020 and had paid ₹27.5 crore even before an agreement to sell was executed on October 23, 2020. The mandatory PSIEC no-objection certificate had allegedly not been obtained at that stage.
An analysis of bank accounts further revealed that businessman Sanjeev Kumar Juneja, described by the ED as a close associate of Jagdeep Singh, director of Gulmohar Township India Pvt Ltd, transferred approximately ₹28.65 crore to the company between August 2020 and February 2021. The agency alleged that these funds substantially financed the plot purchase and stamp duty for its registration.
The ED said the investigation is continuing to trace the alleged proceeds of crime and establish the financial links between the individuals and companies under scrutiny.
