Jalandhar, July 22: The Enforcement Directorate (ED) has taken significant action against Ajay Sehgal under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. This move follows a complaint filed in a special PMLA court in Mohali on July 20, 2026. The ED has registered a prosecution complaint against Sehgal for his involvement in laundering proceeds of crime by obtaining fraudulent Change of Land Use (CLU) approvals.
The investigation began based on an FIR lodged by the Punjab Police against Sehgal and other accused. It was revealed that Ajay Sehgal, the secretary of the Indian Cooperative House Building Society Limited, submitted fake consent letters to the Urban and Rural Planning Department. This allowed him to convert 108.58 acres of agricultural land into residential and commercial plots for a real estate project named ‘Suntek City.’ The CLU was issued by GMADA based on these fraudulent documents.
Additionally, Sehgal obtained RERA registration for the project using these fake letters. He failed to transfer land reserved for the Economically Weaker Section (EWS) to GMADA’s estate officer, violating the license conditions. Notably, he began selling units in the project before obtaining a completion certificate from GMADA.
The investigation also uncovered that building plans and CLU approvals were illegally granted without a solid waste management plan, a requirement under building plan regulations. A joint development agreement (JDA) was established between Indian Cooperative House Building Society Limited and VRS Township Private Limited (now ABS Townships Private Limited), transferring all development and sales rights to ABS. The directors of ABS, Sanjay Sehgal and Anil Sehgal, are Ajay’s brothers. They registered La Canela Phase 1 and District 7 with RERA and generated illicit income by selling units in these projects. Furthermore, ABS sold residential units in La Canela Phase 2 without RERA approval.
Complaints regarding the use of fake consent letters began reaching GMADA in 2020. However, no action was taken against the accused, allowing them to continue profiting from the illegally approved project. Instead, ABS was granted a reallocation of 14.59 acres of CLU without following proper procedures, while only a partial CLU was canceled under the Punjab Regional and Town Planning and Development Act, Section 85. This oversight enabled the accused to continue generating illicit income, which is currently under investigation.
Previously, in May and June 2026, the ED conducted searches at several premises and lockers linked to the accused under Section 17 of the PMLA. These searches resulted in the seizure of incriminating documents, digital devices, and cash amounting to ₹30.98 lakh.
The investigation has established that Ajay Sehgal was the mastermind behind generating and concealing the proceeds of crime. Consequently, he was arrested on May 22, 2026, under Section 19 of the PMLA, 2002. The ED estimates that the proceeds of crime amount to approximately ₹348 crore, including ₹212.58 crore from sales and ₹135.41 crore in unsold goods.
The investigation continues as authorities work to uncover the full extent of the fraudulent activities linked to the fake consent letters and illegal approvals.
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