Jalandhar: The Enforcement Directorate (ED) has alleged that former Punjab industries minister Sunder Sham Arora extended undue favours to private real estate players in the transfer of high-value Punjab Small Industries and Export Corporation (PSIEC) plots and, in return, acquired stakes in real estate entities through his son, Parteek Arora. The agency made the allegations after conducting searches at 14 locations across Punjab and Chandigarh in connection with a money laundering probe linked to a disproportionate assets case.The ED’s Jalandhar Zonal Office said searches conducted on Nov 2 and 3 under the Prevention of Money Laundering Act (PMLA), 2002, led to the seizure of mobile phones, digital devices, property-related records, and documents linked to PSIEC plots. The agency also froze and seized bank lockers. The action covered premises linked to three real estate firms, their promoters and associates, besides properties connected to Arora and his family.In a statement issued on Friday, the ED said the searches were carried out at Arora’s residence in Hoshiarpur, Shivam Hospital in Hoshiarpur, and premises linked to SRG Builders and Promoters Pvt Ltd, GRG Developers and Promoters LLP, and Gulmohar Township India Pvt Ltd, along with those of their promoters, directors and associates in Chandigarh and Mohali.The probe stems from an FIR registered by the Punjab Vigilance Bureau under the Prevention of Corruption Act against Arora for allegedly amassing assets disproportionate to his known sources of income. Arora was also accused of offering a bribe of Rs 1 crore to a senior Vigilance Bureau officer to settle pending inquiries and was arrested in Zirakpur on Oct 15, 2022, while allegedly handing over Rs 50 lakh in cash as an advance payment.“Investigation has revealed that Arora, during his tenure as Punjab industries and commerce minister from March 2017 to September 2021, exercised direct control over the functioning of PSIEC. During this period, he extended undue favours to private real estate players in the transfer of high-value PSIEC industrial plots and, in return, acquired stakes in real estate entities in the name of his son, Parteek Arora,” the ED alleged.Referring to Industrial Plot No. A-32, Phase VIII, Mohali, the ED claimed that the property, originally allotted by PSIEC to CT Electronics (now bankrupt), was transferred to GRG Developers and Promoters LLP for Rs 90.56 crore through an auction conducted by ARCIL in February 2020.The agency alleged that although PSIEC was entitled to 50% of the sale value as unearned increase, besides enhanced land cost and transfer fee under the lease deed, the dues were never fully paid. It further claimed that even after the tripartite agreement between PSIEC, ARCIL and GRG was cancelled in August 2021, no steps were taken to cancel the lease deed or resume possession of the plot.The ED also alleged that Arora approved post-facto proposals related to the calculation of unearned increase and enhanced charges, and was directly involved in matters concerning the plot. According to the agency, bank records showed that, through his son Parteek Arora, he had also invested in the acquisition of the property.The agency further claimed that the land was subdivided and sold to third parties even before possession was handed over and mandatory approvals from PSIEC and RERA were obtained. According to the ED, this defeated the original purpose of industrial development and resulted in the generation of proceeds of crime through the sale of subdivided plots.The ED also alleged that in September 2020, Parteek Arora acquired a 35% stake in SRG Builders and Promoters Pvt Ltd, a sister concern of entities promoted by Deepak Garg and Devi Dayal Garg, who were also associated with GRG Developers and Promoters LLP. It further claimed that Parteek Arora was a partner, along with the owners of GRG Developers and their family members, in Aggarwal Buildtech, SS Developers and Land Developers.According to the ED, the investigation also found that Gulmohar Township India Pvt Ltd began making payments to Signify Innovations India Ltd from August 2020 and had paid Rs 27.5 crore even before the agreement to sell was executed on Oct 23, 2020, when the mandatory NOC from PSIEC had not been obtained.The agency further alleged that payments for the plot and stamp duty were largely funded by Sanjeev Kumar Juneja, a close associate of Jagdeep Singh, director of Gulmohar Township India Pvt Ltd. The ED claimed that Juneja transferred around Rs 28.65 crore to the company between August 2020 and February 2021.
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