The Enforcement Directorate (ED) has launched searches across 11 locations in Punjab, including the Punjab Small Industries & Export Corporation (PSIEC) headquarters, regarding a money laundering case involving the illegal industrial plot allotment that resulted in an ₹8.73-crore loss to the state.
The ED case stems from a first information report (FIR) registered by the Punjab Vigilance Bureau (VB) on March 8, 2024, against six top officials of the PSIEC for allegedly misusing their official positions and wrongly allotting expensive industrial plots to their relatives, friends and known persons.
The VB arrested PSIEC’s chief general manager (estates) SP Singh and general manager (personnel) Jaswinder Singh Randhawa on March 8, 2024, while booking estate officer Amarjeet Singh Kahlon, senior assistant Vijay Gupta, consultant Darshan Garg, and sub-divisional engineer (SDE) Savtej Singh.
On Tuesday, the raids were conducted on the premises of Sukhdeep Singh, executive director of the PSIEC,Surendra Pal Singh, former chief general manager, Jaswinder Singh Randhawa, former general manager, Savtej Singh, former SDE and other officials of PSIEC, property dealers and benamidars (proxies).
The case was registered under Sections 420 (cheating), 409 (criminal breach of trust), 467 (forgery of valuable security, etc), 468 (forgery for purpose of cheating), 471 (using as genuine a forged document), 120B (party to a criminal conspiracy to commit an offence) of the IPC and Sections 7 (2), 8, 12 and 13(2) of the Prevention of Corruption Act at the VB police station in SAS Nagar.
{{/usCountry}}The case was registered under Sections 420 (cheating), 409 (criminal breach of trust), 467 (forgery of valuable security, etc), 468 (forgery for purpose of cheating), 471 (using as genuine a forged document), 120B (party to a criminal conspiracy to commit an offence) of the IPC and Sections 7 (2), 8, 12 and 13(2) of the Prevention of Corruption Act at the VB police station in SAS Nagar.
{{/usCountry}}ED officials privy to the probe said that PSIEC officials intentionally delayed the possession of the industrial plots within stipulated time on the pretext of debris, electrical wires etc at the location of the plot.
“Accordingly, the intermediate period used to be considered as zero period and allotments dates used to be shifted forward by many years for payment plans with zero interest rates for the intermediate period. The same plots, which were allotted at meagre values, were later sold at lucrative market value. The differential amount was obtained in cash thereby generating proceeds of crime,” the ED probe found.
‘Deep-rooted nexus’
According to the ED, it came to the fore that one of the former general managers reportedly received a bribe of ₹2 crore for transferring the plot from his benamidar to prospective industrialist, whereas two former officials purchased the plots in the name of benamidar and later sold the same at market rate while depositing price at the old allotment rate with the PSIEC.
“Survey action under Section 16 of PMLA, 2002, is also being conducted at the PSIEC office where these officials were employed and conducted illegal allotments of industrial plots and passed on undue benefits to the allottees causing loss to the state exchequer,” an ED official not wishing to be named said.
During ED raids on May 7, the agency officials recovered ₹21 lakh allegedly thrown from the ninth floor of Western Towers in Kharar by persons linked to the probe. The flat is reportedly linked to Nitin Gohal, an IT businessman currently under the scanner.
VB probe raised flag
The VB investigation revealed that the PSIEC had not adhered to the prescribed instructions at the time of industrial plot allotment.
The VB probe found that the policy had no provision for providing zero percent interest in the corporation. However, according to a noting dated August 1, 2000, from the corporation’s managing director and the resolution passed by the board of directors on February 8, 2005, a waiver was granted, but both these orders were not notified by the state government.
The probe found that one official allotted plots in the name of a close relative/friend/unknown person, while another misused his position, wrongly changed the allotment and possession of industrial plots and assisted his colleague in getting the plots allotted to his known persons/relatives.
The investigation further stated that the said officials waived revenue for 14 plots located in the Industrial Focal Point, SAS Nagar. Later, the occupants allegedly earned huge profits by selling these plots through property dealers at market rates.
The ED is also investigating the alleged role of PSIEC officials and private persons for the diversion and change of land use of the industrial plots allotted in Ludhiana by real estate developers such as M/s Hampton Sky Realty Limited (earlier known as Ritesh Properties and Industries Ltd.), which is owned by Punjab minister Sanjeev Arora.
Arora was arrested by the ED a few months ago in a money laundering case and is currently lodged in jail. He has denied any wrongdoing. Preliminary findings by the ED indicate that the Arora’s firm allegedly caused a loss to the state exchequer and generated proceeds of crime by repurposing 40 acres of industrial land for commercial residential development.
BJP trying to defame Punjab: AAP
Reacting on raids, the Aam Aadmi Party (AAP) said in a statement: “The BJP has already deployed the ED, CBI and Income tax department against Punjab and CM Bhagwant Mann. Having failed to level any credible allegation against the CM, the BJP has now resorted to targeting and maligning people associated with him.”
The AAP said this is nothing but a desperate attempt by the BJP to defame Punjab’s elected government through baseless allegations, without any evidence or factual basis. It said the party is trying to achieve through propaganda what it could not achieve through investigations.