ED raids Royale City Promoters in Punjab, Chandigarh in ₹32.67 crore fraud case
Synopsis
The ED has raided multiple premises of Chandigarh Royale City Promoters and Royale Estate Group in Punjab and Chandigarh, uncovering alleged fund layering and suspicious inter-company transactions. At the heart of the case: dishonoured cheques worth ₹32.67 crore owed to GMADA for a housing project — raising serious questions about where homebuyer money went.
Key Takeaways
The ED Chandigarh Zonal Office-I raided multiple premises in Punjab and Chandigarh on Tuesday under Section 17 of PMLA, 2002 .
Searches targeted individuals including Praveen Kansal alias Rocky , Neeraj Kansal , Daljit Singh , and others linked to CRCPL and Royale Estate Group .
The case relates to alleged fraud involving dishonoured cheques of approximately ₹32.67 crore owed to GMADA for a residential colony at Village Karala, SAS Nagar .
The ED found evidence of suspicious inter-company transactions and fund layering through Royale Estate Group-linked entities.
Electronic devices, financial records, and property documents were seized during the search operations.
The Directorate of Enforcement (ED) on Tuesday conducted searches at multiple residential and commercial premises in Punjab and Chandigarh linked to Chandigarh Royale City Promoters Pvt. Ltd. (CRCPL) and the Royale Estate Group, seizing electronic devices, financial records, and property documents in connection with an alleged fraud and money laundering case. The searches were carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002.
Premises Searched and Key Individuals Named
The ED Chandigarh Zonal Office-I conducted searches at residential premises linked to Praveen Kansal alias Rocky, Neeraj Kansal, Daljit Singh, Anurag Midha, Liaqat Ali, Sumit Bansal, and other connected persons and entities. The main head office of Royale Estate Group, located on the Chandigarh-Delhi Highway, Zirakpur, was also among the premises covered.
The Underlying Fraud Allegation
The ED action stems from FIR No. 0067 dated 19 July 2025, registered by Punjab Police, SAS Nagar, under Sections 406, 420, and 120-B of the Indian Penal Code — covering breach of trust, cheating, and criminal conspiracy — against the directors and associated persons of CRCPL. The accused were booked for allegedly defaulting on statutory payments owed to the Greater Mohali Area Development Authority (GMADA) and for submitting dishonoured cheques amounting to approximately ₹32.67 crore, in relation to a residential colony project at Village Karala, SAS Nagar, Punjab.
What the ED Investigation Found
ED investigators found that CRCPL had substantial outstanding liabilities to GMADA, while project funds were allegedly routed through connected entities and related parties. The probe revealed suspicious inter-company transactions and the layering of funds through entities linked to the Royale Estate Group — a pattern investigators describe as indicative of money laundering activity. During the searches, incriminating documents, digital devices, and property-related records were recovered and seized.
Significance and Broader Context
This comes amid a broader enforcement push by the ED against real estate developers accused of diverting homebuyer funds and defaulting on regulatory dues. Cases involving dishonoured cheques to development authorities — particularly GMADA — have drawn increasing scrutiny in the Punjab and Chandigarh tricity region, where several housing projects have stalled, leaving buyers in legal limbo. Notably, the alleged default involves statutory liabilities to a government body, adding a layer of public interest beyond a purely private dispute.
What Happens Next
The seized materials will be analysed to trace the movement of funds and establish the money trail, according to officials. Further action, including possible attachment of properties or assets, is likely depending on the outcome of the forensic examination of the recovered documents and devices.
Point of View
Defaulting on regulatory dues to authorities like GMADA, and routing money through a web of related entities to obscure the trail. What makes this case notable is the explicit allegation of dishonoured cheques to a government development authority, which goes beyond a civil dispute and directly implicates statutory obligations. The real question is whether the ED's seizures will lead to asset attachment that can compensate affected buyers — or whether, as in many similar cases, the enforcement action remains a headline without restitution. Punjab's housing sector has seen repeated such episodes, and the absence of a fast-track recovery mechanism for homebuyers remains a structural gap that enforcement alone cannot fix.
NationPress
12 Aug 2026
Frequently Asked Questions
Why did the ED raid Royale City Promoters in Punjab and Chandigarh?
The ED raided premises linked to Chandigarh Royale City Promoters Pvt. Ltd. and Royale Estate Group over alleged fraud and money laundering. The case stems from a Punjab Police FIR alleging deliberate default on payments to GMADA and submission of dishonoured cheques worth approximately ₹32.67 crore.
What is the alleged fraud in the Royale City Promoters case?
The accused are alleged to have defaulted on statutory liabilities owed to the Greater Mohali Area Development Authority (GMADA) for a residential colony project at Village Karala, SAS Nagar, Punjab, and to have submitted dishonoured cheques amounting to about ₹32.67 crore. Investigators also allege that project funds were routed through connected entities to layer and conceal the money.
Who are the key individuals named in the ED searches?
The ED searches targeted residential premises linked to Praveen Kansal alias Rocky, Neeraj Kansal, Daljit Singh, Anurag Midha, Liaqat Ali, Sumit Bansal, and other associated persons and entities connected to CRCPL and Royale Estate Group.
What was seized during the ED searches?
Investigators recovered and seized incriminating documents, digital devices, financial records, and property-related documents during the search operations across multiple premises in Punjab and Chandigarh.
What happens next in the Royale City Promoters money laundering case?
The seized materials will be forensically examined to trace the movement of funds. Depending on findings, the ED may proceed with attachment of properties or assets under the PMLA. Further arrests or summons to named individuals remain a possibility as the investigation progresses.
