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Punjab vigilance report indicts Ireo promoters of causing ₹100 cr loss to exchequer
The project, located in Dakha village in Ludhiana, was not completed even three years after approval, the Punjab vigilance report says, adding that GLADA officers showed no interest in collecting the amount due to it from the Ireo promoters
Mohali The Punjab vigilance bureau has recommended the registration of a First Information Report (FIR) against promoters of Ireo Waterfront (now AIPL, Dreamcity) Mega Housing Project in Ludhiana and the Greater Ludhiana Area Development Authority (GLADA) officers concerned for causing a loss of ₹100 crore to the government exchequer.
Of around 1,300 allottees in the project, situated in Dakha village on the Ferozepur road in Ludhiana, 250-odd allottees are awaiting possession for over 10 years. Now, the vigilance has sought permission from the government to register a case.
On November 17, the Enforcement Directorate (ED) had arrested Lalit Goyal, real estate tycoon and managing director of IREO group, in connection with an alleged money-laundering ( ₹2,600 crore) probe. Goyal was taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA) in Chandigarh.
PROJECT WAS APPROVED IN 2005
In 2005, the Punjab industries department had approved the 500-acre project under Industrial Policy 2003. Under terms and conditions with the GLADA, the builder was to pay the due amount under the heads of external development charges (EDC), licence fee, and Social Infrastructure fund (SIF), after phase wise completion of the project.
“The builder, however, paid only the first instalment, with no payment made for the rest of the phases, causing a loss of nearly ₹100 crore to the government exchequer. GLADA officials, too, did not pursue the matter, giving a long rope to the private developer,” the vigilance report notes, adding that GLADA did not secure its dues by way of hypothecation of plots as mandated in the policy framed by the department of housing and urban development.
The report notes, “With the builder not completing the project, even three years after approval, the allottees lodged a complaint regarding incomplete development works and the collusion of GLADA staff in issuing completion certificate for 64-acre pocket in 2017, even as work remains pending even today.”
On April 30, 2021, the Punjab department of housing and urban department cancelled the Partial Completion Certificate issued to the 64-acre pocket. In 2018, the state government issued directions to the builder to stop work and further selling of plots, but the builders continued doing so, in complete violation of government orders.
“Now, the company has handed over the project to a company, AIPL, without paying dues to the government,” the vigilance report adds.
One of the aggrieved home buyers Manmohan Jain said, “I booked 10 adjoining plots for ₹11.5 crore, of which 10.73 crore have been paid to the builder. To date, we have not been offered possession of developed plots.”
GLADA chief administrator Rishipal Singh said, “I have joined only recently, but we have started an inquiry. After the inquiry report, action will be taken as per law.”
