Amritsar Land Scam: PUDA Officials Suspended Over ₹76 Crore Fake NOC Fraud

Amritsar: The Punjab Urban Planning and Development Authority (PUDA) in Amritsar  on Tuesday  uncovered a major scam of Rs 76 crore involving the issuance of fake No Objection Certificates (NOCs) for properties in illegal colonies, suspending two senior assistants involved. Reports reaching said that the fraud has resulted in a ₹76 crore loss to the.

Amritsar: The Punjab Urban Planning and Development Authority (PUDA) in Amritsar  on Tuesday  uncovered a major scam of Rs 76 crore involving the issuance of fake No Objection Certificates (NOCs) for properties in illegal colonies, suspending two senior assistants involved.

Reports reaching said that the fraud has resulted in a ₹76 crore loss to the state. Sources said that at least 340 fake NOCs were issued, allowing unauthorized constructions to bypass government fees. Authorities have launched an investigation, and efforts are underway to crack down on illegal colonies and prevent further fraud.

Official sources also said that  two senior assistants involved in the scam have been suspended for their alleged involvement, with one accused of issuing NOCs using counterfeit diary numbers. 

Confirming the incident, Major Amit Sareen, Additional Chief Administrator of the Amritsar Development Authority said that these unauthorized actions led to significant financial losses for the government, as license fees were circumvented.

Prior to October 2022, the NOC issuance process was conducted offline. NOCs are essential for properties in unapproved colonies—those developed without obtaining the necessary promoter certificates from PUDA or the Housing Department, thereby evading mandatory license fees and external development charges. Unsuspecting buyers often purchased plots in these illegal colonies, only to face hurdles during property registration due to their unapproved status.

In 2018, a policy was introduced allowing such unapproved colonies to regularize by paying a compound fee to the government, facilitating the issuance of NOCs and subsequent property registrations. Despite transitioning to an online system in October 2022, complaints emerged about the continued manual issuance of fake NOCs, lacking proper documentation and payments.

Investigations have identified 38 illegal colonies associated with these fraudulent NOCs, with the potential for the financial impact to exceed Rs 100 crore as inquiries continue. 

Official sources also said that detailed investigations on the issue are still going on. More details on the incident are awaited.