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Punjab: ED summons IAS officer Anurag Verma on Aug 31 in ₹348-crore CLU money-laundering probe
He is 2nd IAS officer to be summoned by agency after Kanwal Preet Brar, who has been called again on Aug 27
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Jalandhar
The Enforcement Directorate (ED) has summoned 1993-batch, Punjab-cadre IAS officer Anurag Verma to appear before the federal agency in its money-laundering investigation into alleged fraud involving change of land use (CLU) approvals for major real-estate projects in Punjab.
A former Punjab chief secretary, Verma, who is presently posted as additional chief secretary-cum-financial commissioner (revenue), is the second IAS officer to be summoned by the agency in the case. Earlier, the agency questioned IAS officer Kanwal Preet Brar for nearly nine hours on August 18. Brar has been re-summoned by the ED on August 27.
The ED is probing the process for granting CLU permissions, scrutiny and verification of applications, alleged violations of Real Estate Regulatory Authority (RERA) provisions and the role of competent authorities in detecting purportedly fraudulent consent letters.
The ED had already filed a nearly 3,500-page prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Mohali on July 20. In the complaint, the agency accused realtor Ajay Sehgal of being the alleged mastermind behind the generation and concealment of proceeds of crime estimated at ₹348 crore.
ED officials said in the summons, sent through an email, Verma has been asked to appear before the agency on August 31 at ED’s zonal office in Jalandhar.
“A thorough investigation is underway to examine the alleged roles of the officials at helm of affairs in the housing and urban development department. We are also looking into unauthorised layout modifications allegedly made to benefit private builders, besides issuing fraudulent CLUs on the basis of fake consent letters,” ED officials privy to the probe said.
Verma, who was then heading the department of housing and urban development, said he has received ED summons on Tuesday and has thoroughly gone through it.
“Though the summons failed to mention the case in which I have been summoned, I will present all the required records before the agency with clear facts,” said Verma.
Suntec City project under scanner
The investigation centres on the Suntec City real-estate project in Mullanpur, New Chandigarh. According to the ED, Sehgal, who was associated with the Indian Cooperative Housing Building Society (ICHBS) Ltd, allegedly submitted forged consent letters to the department of town and country planning to obtain CLUs for 108.58 acres of agricultural land for residential and commercial development.
The agency alleges that the CLUs formed the basis for obtaining a licence from the Greater Mohali Area Development Authority (GMADA) and registration of the project under the Real Estate (Regulation and Development) Act, or RERA.
The ED’s case originated from an FIR registered at Mullanpur police station in November 2022 against Sehgal and other office-bearers of ICHBS, including Suresh Kumar Bajaj, Aashish Kamra and Rajesh Girdhar, over allegations of cheating landowners and customers through fraudulent CLUs and related documents.
Sehgal, described by the ED as a key promoter of the Suntec City project, was arrested on May 22.
ED puts alleged proceeds of crime at ₹348 crore
According to the prosecution complaint, the ED has quantified the alleged proceeds of crime at approximately ₹348 crore. The amount comprises about ₹212.58 crore in sales and ₹135.41 crore in unsold inventory, the agency has alleged.
The ED has further alleged that Sehgal failed to transfer land earmarked for economically weaker sections (EWS) to the GMADA estate officer as required under the licence conditions. The agency has also alleged that units were sold before RERA registration and that possession was handed over to some landowners without obtaining the requisite completion certificate from GMADA.
The agency has alleged that the building plan and CLU for the Suntec City project were also approved without provision for a mandatory solid-waste management area.
The ED investigation has also focused on a joint development agreement between ICHBS Ltd and VRS Township Pvt Ltd, now known as ABS Townships Pvt Ltd. According to the agency, development and sale rights for the project were transferred to ABS Township, whose directors included Sehgal’s brothers, Sanjay Sehgal and Anil Sehgal.
The agency has alleged that ABS Township subsequently registered projects including La Canela Phase 1 and District 7 with RERA and generated proceeds through the sale of residential units in New Chandigarh. It has also alleged that units in La Canela Phase 2 were sold without obtaining RERA approval.
The ED said GMADA began receiving complaints about the alleged use of forged consent letters from 2020 onwards. Despite the complaints, the agency has alleged, no effective action was taken against the accused, allowing the alleged generation of proceeds from sales in a project whose approvals were under question.
The agency has further alleged that ABS Township was subsequently granted CLU for another 14.59 acres, involving an alteration of the originally approved layout, without following the requirements of the RERA.
The ED conducted searches at multiple premises and lockers linked to the accused in Mohali, Chandigarh and other locations in May and June. During the searches, the agency said it seized incriminating documents, digital devices and unaccounted cash amounting to ₹30.98 lakh.
The agency also claimed that ₹21 lakh was recovered after allegedly being thrown from the ninth floor of Western Towers in Kharar by persons linked to the accused.
The ED has alleged that Sehgal knowingly generated, acquired, possessed, concealed and used proceeds of crime arising from the alleged offences connected with obtaining CLUs through forged consent letters and subsequent approvals and registrations.
