The Directorate of Enforcement (ED), Jalandhar, has arrested Ajay Sehgal, Secretary of the Indian Cooperative House Building Society, in a money laundering case tied to forged consent letters used to fraudulently obtain Change of Land Use (CLU) permissions for the Suntec City real estate project in Punjab. The arrest was made on Friday, 23 May, following an investigation triggered by an FIR registered by the Punjab Police on the basis of complaints from farmers who alleged their signatures had been forged.

What the Investigation Revealed

According to the ED, Sehgal — acting through the cooperative housing society — prepared fake consent letters relating to 30.5 acres of land belonging to 15 landowners. The forged documents, which allegedly carried fabricated signatures and thumb impressions, were used to secure CLU permissions for the large-scale Suntec City real estate development.

Beyond Suntec City, investigators found Sehgal was also involved in developing the La Canela residential multi-storey complex and the District 7 commercial complex — both built on CLU permissions allegedly obtained through the same forged documents.

Sales Without RERA Approval, EWS Plots Withheld

The ED stated that units across these projects were being sold even before obtaining proper registration and approval from the Real Estate Regulatory Authority (RERA), with total sales from allegedly unauthorised transactions exceeding ₹200 crore. Investigators also found that plots earmarked for the Economically Weaker Sections (EWS) had not been transferred to the Estate Officer of GMADA as required.

Cash Thrown from Balcony During Searches

Earlier search operations on 7 May at eight locations linked to the Indian Cooperative House Building Society and ABS Township Private Limited yielded a dramatic development: cash amounting to ₹21 lakh was allegedly thrown from the balcony of a liaison businessman identified as Nitin Gohel, scattering on the road below before being recovered by ED officials.

DTCP and GMADA Officials Under Scanner

The agency noted that, contrary to proceedings before the High Court, only a partial revocation of CLU for 30 acres was carried out under Section 85 of the Punjab Regional and Town Planning and Development Act, instead of the stricter action mandated under Section 90. The role of senior officials in the Department of Town and Country Planning (DTCP) and the Greater Mohali Area Development Authority (GMADA) is now under active investigation, with the ED alleging that illegal gratifications were used to benefit developers at the expense of farmers and landowners.

The ED has indicated that further arrests are likely, with the probe potentially reaching higher-level officials who allegedly facilitated or supported the accused in exchange for illegal benefits.