CHANDIGARH: The Enforcement Directorate’s investigation into alleged financial irregularities involving the Greater Mohali Area Development Authority (GMADA) has taken a significant turn, with the agency claiming that changes in land reserve prices could have resulted in a potential loss of nearly ₹10,000 crore to GMADA and the Punjab government.According to the ED, searches and survey operations were carried out at 26 locations across Delhi, Mohali, Chandigarh, Panchkula and Ludhiana as part of a money-laundering investigation linked to Tirupati Infra Projects Pvt. Ltd. and associated entities. The action was conducted under the Prevention of Money Laundering Act (PMLA).
The investigation stems from a CBI case concerning alleged bank fraud involving Tirupati Infra Projects. During its preliminary scrutiny, the ED said it detected alleged cash transactions, questionable share-premium dealings and other financial irregularities. The agency subsequently expanded its examination to transactions involving GMADA, private developers and land-related decisions.
₹57 Crore Dues Waiver Under Scanner
One of the major issues being examined is an alleged financial benefit of approximately ₹57 crore arising from the waiver of statutory dues involving Remigate Infra Developers Private Limited.The ED has stated that information gathered during the investigation indicates that the waiver resulted in a substantial pecuniary benefit to the private entity. The agency is also examining the alleged role of senior GMADA officials in the matter.At this stage, these are investigative allegations and claims recorded by the ED and have not been established as criminal wrongdoing by a court.
₹10,000 Crore Potential Loss From Reserve-Price Changes
Perhaps the most consequential allegation concerns GMADA’s unsold land bank.The ED has alleged that reserve prices of certain unsold properties were reduced before auctions and that the process may have been manipulated in a manner that caused a potential loss of nearly ₹10,000 crore to GMADA and the Punjab government.The figure represents the agency’s current estimate of the potential financial impact under investigation, rather than a judicially established loss.
Master Plans, Auctions and Land Acquisition Examined
The investigation is not confined to individual property transactions. The ED has reportedly examined decisions concerning GMADA’s master plans, fresh auctions, land acquisition, compensation and the issuance of Letters of Intent.The agency has also raised questions about the functioning of a private consultancy and its alleged proximity to GMADA and PUDA offices. Investigators are examining whether such arrangements influenced land acquisition awards, compensation and related administrative decisions.The ED has further alleged irregularities involving transfer deeds and land-related transactions despite notifications issued under the land acquisition law. These allegations remain subject to investigation.
26 Locations Searched
The September 24 operation covered multiple locations associated with the Tirupati group and other entities, while simultaneous action was undertaken at GMADA and the Punjab government’s Housing and Urban Development Department to collect relevant records and electronic evidence.The agency said electronic devices and documents were examined and seized during the operation.
Punjab Government Approaches High Court
The ED operation also triggered a legal confrontation between the agency and the Punjab government.The state government approached the Punjab and Haryana High Court alleging that certain government officials were being illegally detained during the ED proceedings. The court appointed a warrant officer to inspect the situation at the GMADA premises.According to the ED’s account, the warrant officer interacted with the concerned officials and examined search authorisations, panchnamas and other documents. The officials reportedly stated that they had not been illegally detained. The Punjab government subsequently sought withdrawal of its petition, and the court dismissed it as withdrawn, while keeping legal remedies open.
Operation Ends After More Than 48 Hours
The ED’s operation at the GMADA headquarters reportedly continued for more than 48 hours, with investigators examining official records and questioning officials before concluding the proceedings on September 24.
A Wider Question Over Public Land and Revenue
The latest developments place a broader spotlight on how public land is valued, auctioned and transferred, and how financial concessions are granted to private developers.The central questions now before investigators include whether reserve prices were deliberately altered, whether government dues were improperly waived, whether officials exercised their authority in accordance with established procedures, and whether any private parties gained financially from administrative decisions.
The ₹10,000-crore potential loss and ₹57-crore alleged benefit are figures cited by the ED as part of its ongoing investigation. They should therefore not be treated as final findings until the investigative and judicial processes are completed.The ED probe is expected to bring greater scrutiny to GMADA’s land transactions, auction procedures, acquisition decisions and dealings with private developers as investigators examine the documentary and electronic evidence collected during the searches.
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