ED alleges Rs 10,000 crore GMADA land irregularity; Satyendra Jain, Manish Sisodia named in probe
Mohali/Chandigarh: The Enforcement Directorate (ED) has widened its money laundering investigation linked to Greater Mohali Area Development Authority (GMADA), alleging irregularities in land auctions, acquisitions, compensation and other development-related decisions that could have caused a potential loss of nearly Rs 10,000 crore to GMADA and the Punjab Government.
The allegations came after the ED concluded a search and survey operation at GMADA's offices in Mohali following an investigation linked to a separate bank fraud case involving Tirupati Infra Projects. The agency said its wider action covered 26 locations across Delhi, Mohali, Chandigarh, Panchkula and Ludhiana. Electronic devices, documents and other material were seized during the operation, according to the ED.
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The agency's claims have also brought Aam Aadmi Party leaders Satyendra Jain and Manish Sisodia into the investigation. The ED has alleged that the two leaders held unofficial meetings with senior GMADA officials and that important matters concerning land auctions, master plans, acquisitions and compensation were discussed outside the authority's formal administrative process. The AAP hasm however, rejected the allegations and described them as false and politically motivated.
ED alleges reserve prices were reduced before auctions
One of the central issues being examined by the agency is the pricing of GMADA's unsold land.
The ED has alleged that reserve prices of portions of GMADA's unsold land bank were reduced before they were put up for auction. According to the agency, the alleged manipulation could have resulted in a potential loss of almost Rs 10,000 crore to GMADA and the state exchequer.
The investigation is also looking into decisions relating to land acquisition, changes to master plans, auction procedures, compensation and concessions allegedly granted to private developers.
Jain and Sisodia's alleged meetings under scanner
The ED has specifically alleged that Satyendra Jain and Manish Sisodia were involved in unofficial meetings with GMADA officials over important policy and land-related matters.
According to the agency, senior officials allegedly carried files from PUDA Bhawan to a government residence in Sector 39, Chandigarh, where meetings concerning GMADA affairs were reportedly held.
The property, identified as House No 926, was officially allotted to AAP leader and Punjab Water Supply and Sewerage Board chairman Sunny Singh Ahluwalia. The ED has alleged that the premises were used for meetings involving Jain and his associates.
The agency has further alleged that Amarendra Jha, described as an OSD to Jain, operated from a room at PUDA Bhawan despite not holding an official position there. The ED claims that instructions relating to GMADA matters were allegedly communicated from there.
Probe began with Rs 238-crore Tirupati Infra bank fraud case
The ED's investigation originated from a CBI case concerning an alleged Rs 238-crore bank fraud involving promoters of Tirupati Infra Projects Private Limited, identified as Jagmohan Garg and Manmohan Garg.
According to the ED, the investigation later brought several GMADA-related transactions and decisions under scrutiny.
The agency is examining the alleged involvement of private companies and individuals in land development, allotments, acquisitions and financial concessions.
Rs 57 crore waiver under investigation
Another major issue being examined is an alleged waiver of government dues and penalties involving Remigate Infra Developers Private Limited.
The ED has alleged that the company received an improper waiver of statutory dues and penal interest, with the financial benefit estimated at around Rs 57 crore.
The agency is also investigating the alleged re-allotment of cancelled plots and other decisions involving private developers.
Several serving and former officials have come under the agency's scrutiny in connection with the investigation. They include Punjab Housing and Urban Development Department Principal Secretary Vikas Garg, GMADA Chief Administrator Sandeep Rishi, Additional Chief Administrator Amarinder Malhi, Land Acquisition Collector Rohit Jindal and former GMADA Chief Administrator Rajeev Gupta.
ED claims electronic evidence was seized
During the searches, the ED examined official files as well as electronic devices and computer systems, according to reports.
The agency has also claimed that material recovered from seized mobile phones contained conversations relating to alleged hawala transactions involving relatives of Punjab politicians.
The ED is continuing to examine the seized material as part of its investigation.
Punjab government moved High Court over alleged detention
The ED operation also led to a legal confrontation between the central agency and the Punjab government.
During the search, the Punjab Government approached the Punjab and Haryana High Court with a habeas corpus petition, alleging that senior government and GMADA officials were being kept at the premises and were not being allowed to leave.
The High Court subsequently appointed Rajan Nanda, Registrar (Administration-II), as a warrant officer to visit the GMADA office and verify the situation.
Nanda visited the GMADA premises in the early hours of September 24 and interacted with the officials who were present there.
According to his report, the officials told him that they had not been illegally detained and that no undue pressure had been placed on them. They also said they had been allowed to communicate with their families. The ED told the warrant officer that the officials were required to remain available while forensic teams copied and cloned data from electronic devices.
After the search operation ended and the officials were released, the Punjab Government withdrew its habeas corpus petition. The High Court allowed the withdrawal while leaving other legal issues open for consideration before the appropriate forum.
AAP rejects ED allegations
The Aam Aadmi Party has denied the ED's allegations involving Jain and Sisodia.
The party has maintained that neither leader had any role in GMADA's official functioning, projects or day-to-day decisions. AAP has also questioned the legal basis of the ED's action, arguing that the original CBI case related to an alleged bank fraud involving Tirupati Infra Projects and was not a case against GMADA.
The political party has described the ED action and the allegations against its leaders as politically motivated.
The ED, meanwhile, maintains that its investigation has uncovered material requiring further examination and that the GMADA-related transactions are being investigated as part of the wider money-laundering probe.
The investigation is continuing.
- PTC NEWS
