The Enforcement Directorate's (ED) Jalandhar Zonal Office conducted search operations across Chandigarh, Amritsar, Gurdaspur, and Ludhiana on 13 August, targeting officials of the Punjab Small Industries and Export Corporation (PSIEC) in connection with a money laundering probe into the fraudulent allotment of industrial plots. Unaccounted cash of ₹12,15,000 was recovered and seized, and bank accounts totalling ₹4.01 crore belonging to two former senior officials were frozen during the operation.

What the Searches Uncovered

Investigators recovered various incriminating documents and digital devices from multiple premises during the search proceedings. The ED also conducted a survey at the PSIEC's own office as part of the same operation.

The agency's investigation, initiated on the basis of a First Information Report (FIR) filed by the Punjab Vigilance Bureau under the Prevention of Corruption Act, 1988 and the Indian Penal Code (IPC), revealed a systematic scheme of fraudulent plot allotments involving PSIEC officials and private individuals.

How the Fraud Was Allegedly Operated

According to the ED, industrial plots were allotted to individuals with no technical industry background — a fundamental eligibility requirement. Applicants reportedly used fake firms and fictitious addresses in their applications, leveraging close ties with PSIEC officials to secure allotments.

In a further manipulation of the system, possession of plots was deliberately delayed for years. This intermediate period was reportedly classified as a 'zero period', with allotment dates shifted forward and zero interest charged during the gap — effectively providing illegal financial benefits to allottees.

Several plots were allotted in the names of shell entities and fictitious firms, which were subsequently used to sell the land at prevailing market rates to third-party buyers, generating what investigators describe as substantial proceeds of crime.

Bribes, Cash, and Layered Transactions

The ED's inquiry revealed that illegal allotments were made in exchange for large bribes, received directly or indirectly through cash transactions and layered financial arrangements. Plots designated for industrial use were also allegedly bifurcated and diverted for residential and commercial purposes.

Two former PSIEC officials have been identified by name: Surinder Pal Singh, a former Chief General Manager, and Jaswinder Singh Randhawa, a former General Manager. Bank accounts held by both individuals were frozen during the searches.

Background and Broader Context

The PSIEC is a Punjab government body mandated to promote small industries and facilitate export activity through the allotment of industrial plots. This is not the first time the corporation has faced scrutiny — allegations of irregular allotments have surfaced periodically over the years. The ED's intervention escalates the matter from a state vigilance inquiry to a federal money laundering investigation under the Prevention of Money Laundering Act (PMLA).

The case adds to a growing list of ED actions against state government-linked entities across India, where plot and land allotment irregularities have increasingly attracted central agency scrutiny. Further arrests and asset attachments are possible as the investigation progresses.