ED Launches Raids in Money Laundering Case Involving PSIIC Officials

Chandigarh, August 13: The Enforcement Directorate (ED) has conducted a series of raids in Chandigarh and Punjab, targeting locations in Amritsar, Gurdaspur, and Ludhiana. The operation also included a survey at the Punjab Small Industries and Export Corporation (PSIIC) office.

This action is part of an investigation into a money laundering case linked to the allocation of industrial plots under the names of relatives, friends, and other associates. During the searches, the ED seized numerous incriminating documents and digital devices.

The investigation was initiated based on an FIR filed by the Vigilance Bureau. This FIR was registered against several PSIIC officials and private individuals under various sections of the Prevention of Corruption Act, 1988, and the Indian Penal Code (IPC).

The inquiry revealed that industrial plots were allocated to individuals lacking any knowledge of technical industries. Applicants used fake firms and addresses when applying for these plots, and due to close ties with PSIIC officials, they were granted allocations.

Moreover, the possession of these plots was not handed over within the stipulated time, resulting in significant delays. This interim period was referred to as the ‘zero period,’ during which the allocation dates for payment plans were extended by several years, with zero interest applicable for that duration.

The investigation has uncovered that these illegal allocations were made in exchange for substantial bribes, received by officials through cash transactions and complex financial arrangements. Many allocations were made in the names of shell companies and fictitious firms, which were later used to sell the allocated plots at current market rates, generating significant profits.

Additionally, the investigation revealed that plots allocated for industrial establishment were subdivided for residential and commercial plotting. During the raids, substantial evidence was collected, including cash amounting to ₹1,215,000. Furthermore, ₹40.1 million in bank accounts belonging to PSIIC officials—General Manager Prem and former General Manager Jaswinder Singh Randhawa—has been frozen.

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