ED Arrests Builder Ajay Sehgal Over Fake Land Documents, Multiple Projects Halted

May 23, 2026

The Enforcement Directorate (ED) Jalandhar has arrested Ajay Sehgal, secretary of the Indian Cooperative House Building Society, in a case of money laundering and obtaining Change of Land Use (CLU) of land through fake documents.

ED’s investigation has revealed a major disclosure that fake consent letters were prepared related to 30.5 acres of land belonging to 15 farmers. CLU was obtained by forging the signatures and fingerprints of the landowners on these documents. On this basis, a large real estate project named ‘Suntec City’ was developed.

This investigation had started based on an FIR by the Punjab Police. The farmers had complained that their land documents were used without their permission.

The ED investigation revealed that Ajay Sehgal, based on a fake CLU, developed not only ‘Sunteck City’ but also a multi-story residential complex named ‘La Canela’ and a commercial complex ‘District-7’.

According to the investigation agency, the sale of units in these projects had begun even before receiving approval and registration from RERA. This led buyers to invest in projects against the rules.

EWS plots have not yet been handed over to GMADA

The ED found in its investigation that plots allocated for the Economically Weaker Section (EWS) have not yet been transferred to the GMADA estate officer. This is also being considered a serious violation of rules.

The agency says that despite discussions in the Punjab and Haryana High Court, only the partial CLU of 30 acres of land was canceled. It is alleged that to save the developer, action was taken under Section 85 of the Punjab Regional and Town Planning and Development Act instead of Section 90, so that ‘Suntec City’ could sell its remaining stock.

21 Lakh Thrown from Balcony During ED Raid

In this case, the ED conducted raids on 8 locations connected to the Indian Cooperative House Building Society and ABS Township Private Limited on May 7.

During the raid, 21 lakh rupees in cash were thrown from a compound balcony onto the street below. The money scattered on the street, but later ED officials recovered the entire amount.

Questions Also on GMADA and Town Planning Department

The ED’s investigation has now reached GMADA and the Town and Country Planning Department. The agency claims that several officials approved projects in return for illegal benefits and advantaged real estate developers.

The investigation has also revealed that in Punjab, several developers harmed the interests of farmers and landowners by obtaining approvals against the regulations.

According to sources, the ED may make a few more arrests in this case soon. The agency is trying to reach those officials in GMADA and other departments who are accused of supporting the entire fraud by taking bribes.