A big scam related to the real estate sector has come to light in Punjab, in which farmers have been accused of setting up projects worth crores of rupees by making fake documents of their land. In this case, the Enforcement Directorate (ED) has arrested Ajay Sehgal, Secretary of the Indian Cooperative House Building Society.
ED arrested Sehgal on May 22 (Friday) in a money laundering case. It is alleged that without the consent of the farmers, fake consent letters for their land were prepared and through the same documents, big real estate projects were set up after obtaining government approval.
Farmers complained to the police
According to the information, this whole matter came to light when many farmers complained to the Punjab Police that fake documents had been prepared regarding their land. The farmers alleged that they never gave any permission for changing the use of their land i.e. Change of Land Use (CLU), but consent letters were submitted in their name in the government records.
On the basis of this complaint, Punjab Police had registered an FIR. Later, ED registered a case of money laundering in this matter and started investigation. Investigation revealed that Ajay Sehgal and people associated with him had prepared fake consent letters of 15 farmers belonging to about 30.5 acres of land. In these documents, fake signatures and thumb impressions of the farmers were used to show the government officials that the land owners were ready for the project.
Santec City was set up with fake CLU
According to ED’s investigation, a big real estate mega project named Santec City was prepared on the basis of these fake consent letters. CLU i.e. Change of Land Use is the government approval to convert any agricultural land into residential or commercial use. Without CLU, no builder can build a colony or complex on agricultural land.
The investigating agency says that this approval was obtained through fake documents and then plotting and construction was started on a large scale. According to ED, it was not limited to just one project but many other big constructions were also done on the basis of this approval.
La Canela and District 7 also under investigation
ED has revealed that Ajay Sehgal developed not only Santec City but also a residential multi-storey project named La Canela and a commercial complex named District 7 on the basis of this disputed CLU. It is alleged that the sale of flats, shops and units in these projects was started disregarding the rules.
Investigation revealed that many units were sold until the project had received approval and registration from RERA i.e. Real Estate Regulatory Authority. That means money was being taken from the buyers but the necessary legal process was not completed.
21 lakh rupees thrown from the balcony
In this case, ED had conducted a major raid on 7 May 2026. Simultaneous raids were conducted at 8 locations associated with Indian Cooperative House Building Society and ABS Township Private Limited.
According to ED, during the raid, about Rs 21 lakh in cash was thrown from the balcony of the building onto the road below. The notes fell out of the net under the balcony and scattered on the road. Later, ED officials surrounded the entire area and recovered the cash. The agency suspects that this amount was thrown in haste to save it from investigation.
Plots reserved for the poor were not even handed over.
Investigation also revealed that the plots which were reserved for the economically weaker section i.e. EWS category in the project, have not been handed over to GMADA yet. According to the rules, it is necessary to reserve some portions for the poor in big real estate projects. It is alleged that this rule was also not followed.
ED also keeps an eye on GMADA and government officials
ED’s investigation is no longer limited to builders only. The agency is now also investigating the role of officials of GMADA and Town and Country Planning Department. ED claims that many government officials allegedly helped in getting fake documents approved by taking bribes.
According to the investigating agency, despite the discussion in the Punjab and Haryana High Court, the partial CLU of only 30 acres of land was cancelled. The allegation is that strict action was not taken deliberately so that Santec City could sell its remaining flats and plots. ED says that where strict action should have been taken under Section 90 of the Punjab Regional and Town Planning Act, Section 85, which provides milder action, was imposed.
Investigation into real estate-government nexus
ED says that this case is not limited to fake documents only but has emerged as a big example of alleged nexus between the real estate sector and some government officials in Punjab. The agency is now trying to find out which officials took bribe and approved it against the rules and how many people benefited from it.
According to sources, many big names may come to light in the investigation. ED has indicated that action may also be taken against some officials associated with GMADA and Town Planning Department in the coming days. The agency is investigating this entire network to find out how a real estate business worth crores of rupees was created through farmers’ land, fake documents and government approvals.
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