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₹100-cr scam: HC accepts LIT’s plea to stop plot allotment to co-op society
In its order dated May 12, the HC has directed the Ludhiana police department to submit a report of the special investigation team formed to investigate the case within three months
The Punjab and Haryana high court (HC) has accepted the petition filed by Ludhiana Improvement Trust (LIT) in the decades-old ₹100-crore scam for stopping the allotment of 33 plots (150 square yards each) to the members of a cooperative society.
In its order dated May 12, the HC has directed the Ludhiana police department to submit a report of the special investigation team (SIT) formed to investigate the case within three months.
As per the LIT officials, members of Shaheed Bhagat Singh Cooperative Society fraudulently got 55 plots allotted to their members under the Model Town scheme in 1990. While the LIT was developing the scheme, it had planned to acquire the land which belonged to the society in present Model Town Extension Block-C.
Even as the society got the land exempted from the state government, it still managed to get 55 plots allotted to the members stating that the cooperative’s land was acquired by the LIT. The land (now in Ambedkar Nagar) was under encroachment at the time and not in possession of the society.
While the society got 25 plots allotted in connivance with LIT officials, it sought 33 more plots at some other place.
The scam was initially unearthed in 1996 and an FIR was also lodged in 2001. But no proper follow-up was done. The LIT also lost the case in the state and national consumer dispute redressal commissions and the Supreme Court.
When the society got execution orders from the consumer court for allotment of 33 plots, the LIT filed a special leave petition (SLP) in the HC against the same and police investigation was reinitiated in the case recently.
LIT chairman Raman Balasubramaniam said, “It is a major breakthrough in the scam worth around ₹100 crore. The court has observed that the allotment was done in a fraudulent manner. The LIT will not allot the 33 plots and cancel the previous allotments as well.”
“We have been regularly pursuing the case in coordination with the state department and action will be taken against all the culprits. We have also decided that from now on, criminal proceedings will be initiated apart from taking departmental action for fraud to discipline the fraudsters,” he added.
Six ex-LIT officials were involved in fraud
While BD Aggarwal and then executive officer KR Garg were nominated in the FIR lodged in 2001, the police have recommended nomination of four others in the FIR during recent investigation. They include then legal assistant Paramjeet Singh, superintendent Naveen Malhotra, sale superintendent ML Malhotra and assistant town planner BS Sohi. While Garg has been arrested by the police, Naveen Malhotra is on the run. The others have died.
Fate of 17 plots uncertain
After the LIT commenced the process of cancelling the allotment of remaining 25 plots, uncertainty looms over the fate of 17 bonafide plot holders as they have purchased the same from the original allottees, unaware of the fraud.
LIT officials said total 25 plots were allotted, but only eight are situated on the land belonging to the society, while the rest are on LIT land. Some of the current plot holders have also approached the HC over the cancellation.
