ED Probe Deepens Into New Chandigarh Housing Project Over Suspected CLU Irregularities

Fresh investigations by the Enforcement Directorate (ED) have placed major real estate approvals in New Chandigarh under scrutiny. ED raids linked to the Suntec City project uncovered alleged irregularities in land permissions, ownership records, and investor transactions.

Investigators suspect that promoters used forged consent documents and disputed land records to secure Change of Land Use (CLU) approvals. The project spans Palheri and Rehmanpur villages in Mohali district.

Following the ED action, the Punjab Department of Housing and Urban Development started reviewing permissions granted to The Indian Co-operative House Building Society Ltd, the promoter of the Suntec City project.

ED Conducts Raids at Multiple Locations

ED teams conducted raids on May 8 and 9 at 12 locations across Mohali, Chandigarh, and New Chandigarh. The searches formed part of an ongoing money-laundering investigation.

Officials targeted properties linked to real estate developers and alleged middlemen, including Nitin Gohal and Pritpal Singh Dhindsa.

The probe focuses on Suntec City and Altus Space Builders Private Limited. Investigators allege that both groups secured CLU approvals through fraudulent methods and misled landowners and buyers.

Questions Over Land Ownership

Official records show that the promoters applied for CLU clearance in 2014 for nearly 123 acres of land. However, investigators later found that the society directly owned only a limited portion of the land mentioned in the application.

Officials are now examining how authorities granted permissions despite incomplete ownership records.

Sources in the housing department said officials involved in processing and approving the permissions are also under investigation.

Authorities found that promoters supported a large part of the land claim through “irrevocable consent agreements” instead of ownership documents.

Landowners Allege Forged Signatures

The controversy intensified after several landowners from Palheri village accused the promoters of forging their signatures on consent letters.

After receiving complaints, the housing department referred the matter to Mohali police in October 2023 for a detailed investigation and forensic verification of signatures.

Punjab Government Cancels Part of CLU Approval

The project received CLU approval for more than 108 acres in 2016. Authorities later approved the layout plan in the same year.

In August 2024, the Punjab government cancelled permissions linked to nearly 30.5 acres of land. Chief Minister Bhagwant Mann approved the decision.

The cancellation reduced the effective project area to around 92 acres. However, the project still qualifies under the revised 2020 policy norms, which reduced the minimum land requirement for New Chandigarh colonies.

RERA Under Scanner

The matter also reached the Punjab and Haryana High Court. During the hearing, the court raised concerns about the project’s registration with Punjab RERA.

The court reportedly observed that the promoters failed to submit mandatory joint development agreements during registration.

According to the ED, promoters Suresh Kumar Bajaj and Ajay Sehgal allegedly used forged consent letters linked to more than 30 acres owned by 15 landowners.

Investigators further alleged that the society collected over ₹150 crore from investors without executing sale deeds.