The Enforcement Directorate has expanded its investigation into alleged ₹348-crore irregularities in change of land use (CLU) approvals linked to real-estate projects in Punjab. Senior IAS officer Anurag Verma has been summoned to appear before the agency on August 31. The investigation is examining the approval process, alleged regulatory violations, unapproved layout changes and purportedly forged consent letters. The ED has already questioned another IAS officer, Kanwal Preet Brar, and filed a prosecution complaint naming real-estate agent Ajay Sehgal as an alleged key figure. The allegations remain subject to investigation and judicial proceedings.

ED Expands Punjab CLU Investigation, Summons IAS Officer Anurag Verma Over ₹348-Crore Alleged Fraud 

The Enforcement Directorate has summoned senior Punjab IAS officer Anurag Verma in connection with alleged land use fraud of ₹348 crore related to the Suntec City project in New Chandigarh. The agency is probing approvals, regulatory compliance and the roles of public officials.

The Enforcement Directorate (ED) has summoned Punjab-cadre IAS officer Anurag Verma to appear on August 31 in connection with its ongoing ₹348-crore money-laundering investigation related to alleged irregularities in change of land use (CLU) approvals for major real-estate projects in Punjab.

At present, the charge of Additional Chief Secretary-cum-Financial Commissioner (Revenue) is held by Anurag Verma, a 1993 batch Indian Administrative Service officer and former Punjab Chief Secretary. He is the second IAS officer to be questioned in the case after Kanwal Preet Brar, who was questioned earlier for nearly nine hours and has again been summoned on August 27.

The probe seeks to ascertain the process through which CLU permissions were granted, including scrutiny and verification procedures, alleged violations of Real Estate Regulatory Authority provisions, and handling of allegedly forged consent letters.

ED Expands Probe Into CLU Approvals and Regulatory Compliance

Officials familiar with the probe said the Enforcement Directorate is looking at the roles of authorities responsible for housing and urban development decisions during the period under scrutiny.

It had already filed a prosecution complaint of nearly 3,500 pages before a Special Prevention of Money Laundering Act court in Mohali on July 20. In that complaint, real estate agent Ajay Sehgal was named as the alleged mastermind behind the generation and laundering of proceeds of crime worth Rs 348 crore.

Enforcement Directorate officials said they summoned Anurag Verma by email to appear before investigators at the agency's zonal office in Jalandhar.

Officials linked to the inquiry confirmed that a detailed investigation was under way into the alleged roles of senior officials in the Housing and Urban Development Department. They added that investigators were probing alleged unapproved layout changes and CLUs said to have been issued with forged consent letters.

Anurag Verma, in response to the summons, said that he had received the notice and read its contents. He said the summons did not specify the case, but he would provide all relevant records and factual information to the agency.

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Suntec City Project and Alleged Forged Documents Under Scrutiny

The case relates to the Suntec City real estate project at Mullanpur in New Chandigarh. The Enforcement Directorate has alleged that Ajay Sehgal, associated with the Indian Cooperative Housing Building Society Limited (ICHBS), submitted forged consent letters to get CLUs for 108.58 acres of agricultural land.

The approvals later helped the project in getting a licence from the Greater Mohali Area Development Authority (GMADA) and a registration under the Real Estate (Regulation and Development) Act (popularly known as RERA), investigators alleged. 

The case of money laundering is based on a First Information Report (FIR) registered at Mullanpur police station in November 2022 against Ajay Sehgal and other office-bearers of ICHBS, including Suresh Kumar Bajaj, Aashish Kamra and Rajesh Girdhar.

The Enforcement Directorate (ED) said the accused allegedly duped landowners and customers by using fake CLUs and associated documents. Ajay Sehgal, a key promoter of the Suntec City project, was arrested on May 22.

The prosecution complaint has pegged the alleged proceeds of crime at Rs 348 crore, which includes Rs 212.58 crore from sales and Rs 135.41 crore in unsold stock. 

The agency has also alleged that Ajay Sehgal failed to transfer land reserved for economically weaker sections to the GMADA Estate Officer as required. Investigators further allege that units were sold before RERA registration and possession was provided without obtaining mandatory completion certificates.

The Enforcement Directorate has also alleged that the building plan and CLU approval of the project did not have any provision for a mandatory solid-waste management area. The investigators are also investigating the joint development agreement between ICHBS and VRS Township Private Limited, now renamed as ABS Townships Private Limited.

ABS Townships, which had directors Sanjay Sehgal and Anil Sehgal, was given the rights to develop and sell it, the agency said. The company is accused of registering projects such as La Canela Phase 1 and District 7, and selling units in La Canela Phase 2 without RERA approval.

Sprouts News reported that the Enforcement Directorate has also alleged that GMADA has been getting complaints about forged consent letters since 2020. Investigators say not enough was done to stop the project from making money amid concerns about approvals.

Searches at Mohali, Chandigarh and other locations led to seizure of documents, digital devices and Rs 30.98 lakh in unaccounted cash. The agency also said that ₹21 lakh was recovered, which was allegedly thrown from the ninth floor of Western Towers in Kharar.

The investigation is ongoing, and authorities will likely continue interviewing and reviewing records in the coming weeks as they continue to assess allegations of financial and regulatory violations tied to the case.