ED raids unearth fraud in New Chandigarh CLU approvals

Following the ED action, the Punjab department of housing and urban development initiated a fresh review of approvals granted to The Indian Co-operative House Building Society Ltd for developing a residential colony across Palheri and Rehmanpur villages in Mohali district.

ED raids continued in Mohali, New Chandigarh and Chandigarh as part of the ongoing probe into money laundering and forged land-use approvals linked to Suntec City and Altus Space Builders.

The Enforcement Directorate conducted raids at 12 locations across Mohali, New Chandigarh and Chandigarh as part of a money-laundering probe. Premises linked to builders and alleged liaison agents Nitin Gohal and Pritpal Singh Dhindsa were searched; the agency targeted two real estate groups — Suntec City (promoted by The Indian Co-operative House Building Society Limited) and Altus Space Builders Private Limited — over allegations of fraudulent CLU approvals and cheating landowners and buyers.

In August 2024, the Punjab and Haryana High Court Bench observed that the Punjab Real Estate Regulatory Authority (RERA) had registered the project de hors the fact that promoters failed to submit mandatory joint development agreements.

The Punjab government, with approval from the chief minister, revoked CLU permissions for 30.49 acres, reducing the project area to 92.68 acres. The project remained eligible under 2020 rules that lowered the minimum area from 100 to 50 acres.

The housing and urban development department referred the matter to the Mohali senior superintendent of police, stating it lacked the technical expertise to verify signatures and required a police probe into forged consent letters and related land-title issues.

Layout plan for the Suntec City project was approved in November 2016.

Initial CLU approval for 108.58 acres granted in June 2016; a layout plan for the project was approved in November 2016.

Promoter applied in 2014 for CLU permission for nearly 123 acres. Official records indicate ownership verification covered only limited portions of the land, with a substantial part backed by irrevocable consent agreements submitted by the promoter.