ED Cracks Down: Arrests Royale Estate Promoters in Punjab Land Fraud and Money Laundering Case
Punjab Newsline | Chandigarh
In a significant crackdown against financial irregularities in Punjab’s real estate sector, the Enforcement Directorate (ED) has arrested the promoters of Royale Estate Group and Chandigarh Royale City Promoters Pvt. Ltd. (CRCPL), Praveen Kansal (alias Rocky Kansal) and Neeraj Kansal. The arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA).
The ED conducted extensive searches at multiple residential and commercial premises linked to the promoters. The investigation is focused on large-scale financial misconduct, including the diversion of funds, irregular land-use approvals, and fraudulent property transactions. According to sources involved in the investigation, one of the key areas under scrutiny involves the grant of three Change of Land Use (CLU) approvals allegedly secured within a single day, despite objections and adverse recommendations from the Greater Mohali Area Development Authority (GMADA).
Officials are examining whether these approvals were obtained through alleged misuse of influence and administrative collusion. The matter is also linked to a Punjab Police FIR concerning the alleged non-payment of statutory dues to GMADA and the issuance of cheques worth ₹32.67 crore that were later dishonoured. The ED suspects that funds collected from homebuyers for development projects were allegedly routed through multiple entities using methods associated with money laundering, including layering and diversion of funds.
The federal agency is also investigating allegations arising from a separate criminal case registered by the Punjab Vigilance Bureau against Praveen Kansal, Neeraj Kansal, and Indu Kansal on charges related to cheating and criminal conspiracy. The case stems from a complaint filed by former business associate Pyara Lal Garg, who alleged that the promoters fraudulently took control of a prime land parcel in New Chandigarh. The complaint claims that forged documents and fabricated signatures were used to alter ownership records and transfer property rights without lawful authorization.
Officials stated that the ED is tracing the movement of funds, property deals, and corporate structures associated with the group to determine the scale of the alleged laundering network. Investigators are also examining whether proceeds generated from the alleged offences were reinvested into real estate ventures or channelled through associated firms.
The arrests are being seen as a major development in one of Punjab’s high-profile real estate investigations, with more questioning and financial scrutiny expected in the coming days. Sources indicated that additional individuals linked to approval and documentation processes could also come under the scanner as the probe progresses.
