ED Launches Major Investigation in Punjab Real Estate Fraud Case
The Enforcement Directorate (ED) has launched a significant investigation, conducting searches at multiple locations in Punjab and Chandigarh against a real estate company and its promoters. The action is part of a money laundering probe linked to alleged fraud with the Greater Mohali Area Development Authority (GMADA).
The searches were conducted against Chandigarh Royale City Promoters Pvt. Ltd. (CRCPL) and the Royale Estate Group, based in Zirakpur town of Mohali. The investigation also involves associated persons and entities such as Praveen Kansal alias Rocky, Neeraj Kansal, Daljit Singh, Anurag Midha, Liaqat Ali, Sumit Bansal, and others.
The action has been taken under the Prevention of Money Laundering Act (PMLA). The probe stems from a July 2025 FIR filed by the Punjab Police against the directors of CRCPL on charges of fraud and criminal conspiracy. The company is accused of defaulting on statutory liabilities payable to GMADA and submitting dishonored cheques worth Rs 32.67 crore in relation to a residential colony project at Karala village in Mohali.
Preliminary findings by the ED revealed that CRCPL had substantial outstanding liabilities towards GMADA. Project funds were allegedly routed and diverted through connected entities. Some suspicious inter-company transactions and layering of funds through entities linked with the Royale Estate Group are also under scrutiny.
During the searches, property documents and digital devices were seized. The ED's investigation aims to uncover the extent of the alleged fraud and the financial mechanisms used to launder the funds. This move by the ED underscores the seriousness with which regulatory bodies are addressing financial irregularities in the real estate sector, particularly in regions like Punjab and Chandigarh.
The Royale Estate Group is a prominent player in the real estate market, known for developing residential and commercial projects. However, this investigation could have significant implications for the company's future operations and reputation. The findings of the ED's probe will likely influence the regulatory framework and oversight in the real estate sector, ensuring greater transparency and accountability.
The ongoing investigation highlights the need for stringent compliance and ethical practices in the real estate industry. It also serves as a cautionary tale for developers and promoters, emphasizing the importance of adhering to statutory obligations and maintaining financial integrity.
