27 Aug 2026 Punjab Khabarnama Bureau : The Enforcement Directorate (ED) has widened its scrutiny of Change of Land Use (CLU) approvals in Mohali after its probe into the controversial Suntec City project, with 10 similar approvals granted to private realtors since 2021 now under the agency’s lens.
10 CLU Approvals Under Scrutiny
The Director of Town and Country Planning (DTCP) reportedly granted 10 modified CLU approvals to private realtors between 2021 and 2026.
The development has raised questions about whether similar practices were followed in other real estate projects and whether land-use approvals were granted despite disputes over ownership or landowner consent.
Suntec City Probe Triggered Wider Scrutiny
The broader investigation follows the ED’s probe into Suntec City, a major real estate project promoted by the Indian Cooperative Housing Building Society.
The agency alleges that fake consent letters bearing forged signatures and thumb impressions of landowners were used to obtain CLU approval for the project.
The ED has alleged that the project involved 108.58 acres of agricultural land that was subsequently developed for residential and commercial plots.
ED Probes How CLU Cancellations Were Handled
Investigators are also examining how the DTCP handled cases involving alleged forged documents, fake bank no-objection certificates and other irregularities.
According to officials cited in the report, the department shifted toward processing partial CLU cancellations under Section 85 of the Punjab Regional and Town Planning and Development Act after obtaining legal advice in 2024.
Seven partial cancellation cases linked to alleged forgery and other issues have reportedly been processed under Section 85 since 2024.
Other Developers Also Examined
The builders whose partial CLU cancellation cases were handled between 2021 and 2025 reportedly include Bajwa Developers, Innovative Housing and Infrastructure, Altus Space Builders, Sukhman Infrastructure and Sunny Lovely Developers.
The ED’s wider scrutiny could therefore examine whether similar approval and cancellation procedures were followed across multiple projects.
Punjab Policy Loophole Under Scanner
A key issue in the investigation is reportedly a provision introduced under a 2014 Punjab policy that allowed realtors to obtain CLU or layout-plan approvals with ownership of only 25% of the land in a project area.
For the remaining land, consent letters or no-objection certificates from landowners could be submitted. Investigators suspect this framework may have created an opportunity for fraudulent consents to be used to obtain approvals.
ED Has Already Filed Suntec City Complaint
The Suntec City investigation has already escalated significantly.
In July, the ED filed a prosecution complaint before the Special Court (PMLA), Mohali, against Ajay Sehgal, secretary of the Indian Cooperative House Building Society, alleging that he was involved in laundering proceeds of crime worth nearly Rs 348 crore.
The agency has alleged that the proceeds included approximately Rs 212.58 crore from sales and Rs 135.41 crore in unsold inventory.
Senior Officials Under ED Lens
The probe has also expanded to government officials involved in land-use and development approvals.
The ED has summoned former Punjab Chief Secretary Anurag Verma to appear on August 31 and has re-summoned IAS officer Kanwal Preet Brar in connection with the ongoing investigation.
The agency has been examining how CLU permissions and layout modifications were processed and whether procedural norms were allegedly relaxed.
Questions Over Regulatory Oversight
The investigation has placed the spotlight on the functioning of Punjab’s town-planning system and the safeguards used to verify landowner consent.
The central question is whether existing procedures were sufficient to prevent forged documents from being used to secure development approvals and protect landowners and homebuyers.
What Happens Next?
The ED’s examination of the 10 CLU approvals could determine whether the Suntec City case represents an isolated incident or points to wider vulnerabilities in Punjab’s real estate approval system.
The agency’s investigation remains ongoing, and allegations against individuals or developers will ultimately have to be established through due legal process.