Real Estate Promoter Ajay Sehgal Sent to 11-Day Judicial Custody in CLU Fraud Case

A local court on Tuesday sent real estate promoter Ajay Sehgal to 11-day judicial custody in connection with the Change of Land Use (CLU) fraud case. The matter will now be heard on June 6. Sehgal will be lodged in Ropar jail during custody.

Sehgal was produced in the court after the completion of his five-day remand with the Enforcement Directorate (ED). He is the main promoter of the Suntec City project developed by the Indian Cooperative Housing Building Society (ICHBS) and also served as its former secretary. The ED had summoned him to its Jalandhar regional office for questioning in connection with the CLU fraud case before arresting him on May 22.

The case is linked to Punjab Police FIRs registered in 2022 and 2024, alleging that fake consent letters of landowners were used to obtain CLU permissions for projects, including those linked to Altus Space Builders. According to investigators, alleged forged signatures and thumb impressions of around 15 landowners were used for nearly 30 acres of land.

On May 8 and 9, the ED conducted searches on the premises linked to Sehgal, ABS Townships, Altus Space Builders, Dhir Constructions, and their associates. The agency recovered nearly ₹1 crore during the searches. The ED is also examining the role of officials of the Greater Mohali Area Development Authority (GMADA) and the town and country planning department. Officials from GMADA’s planning and audit wings have already appeared before the agency with records related to approvals granted to the projects.

The CLU fraud case has raised serious concerns about the integrity of land use permissions and the involvement of local authorities. The ongoing investigation aims to uncover the extent of the fraud and hold all responsible parties accountable.