ED files prosecution complaint against Ajay Sehgal in ₹348 crore money laundering case

The Enforcement Directorate (ED) has filed a prosecution complaint before the Special Court (PMLA), Mohali, against Ajay Sehgal, alleging his involvement in a money laundering case linked to the fraudulent procurement of Change of Land Use (CLU) approvals through forged consent letters.

According to an official statement issued by the ED’s Jalandhar Zonal Office, the prosecution complaint was filed on July 20 under the Prevention of Money Laundering Act (PMLA), 2002, following an investigation initiated based on an FIR registered by the Punjab Police against Sehgal and other accused persons.

Advertisement

The agency alleged that Ajay Sehgal, Secretary of the Indian Co-operative House Building Society Ltd., obtained CLU approval for 108.58 acres of agricultural land by submitting forged consent letters to the Department of Town and Country Planning. Based on the allegedly forged documents, GMADA granted a licence for the development of the ‘SUNTEC City’ project, while RERA registration for the project was also secured based on the same documents, the ED said.

The investigation further alleged that Sehgal failed to transfer land reserved for the Economically Weaker Sections (EWS) to the Estate Officer, GMADA, as required under the licence conditions. The ED also claimed that residential units were sold even before obtaining RERA registration and that possession was handed over without securing the mandatory completion certificates. It further alleged that the project was developed without the prescribed solid waste management area required under the approved building plan.

According to the ED, the development rights and sale rights of the project were subsequently transferred to ABS Township Pvt. Ltd., whose directors, ‘Sanjay Sehgal and Anil Sehgal’, are brothers of Ajay Sehgal. The agency alleged that the company later obtained RERA registration for the ‘La Canela Phase-I’ and ‘District 71 projects and generated proceeds of crime through the sale of units. It further alleged that residential units in ‘La Canela Phase-II’ were also sold without obtaining the required RERA approval.

The ED said its investigation found that GMADA had started receiving complaints regarding the alleged use of forged consent letters in 2020. However, it alleged that no action was taken at the time, allowing the accused to continue selling residential and commercial units in a project whose approvals had allegedly been obtained illegally. The agency further alleged that CLU for an additional 14.59 acres was granted after altering the original approved layout without following the procedure prescribed under the RERA Act. Although part of the CLU was later revoked under the Punjab Regional and Town Planning and Development Act, the accused allegedly continued to generate proceeds of crime.

The agency said searches conducted in May and June 2026 at multiple premises and lockers linked to the accused resulted in the seizure of incriminating documents, digital devices and unaccounted cash amounting to ₹30.98 lakh. During the investigation, the ED identified Ajay Sehgal as the alleged mastermind behind the generation and concealment of the proceeds of crime. He was arrested on May 22, 2026, under the provisions of the PMLA.

According to the ED, the alleged proceeds of crime have been quantified at approximately ₹348 crore, comprising ₹212.58 crore from the sale of residential units and an estimated unsold inventory worth ₹135.41 crore. The agency alleged that the accused knowingly generated, acquired, possessed, concealed and utilised proceeds of crime arising from fraudulent CLU approvals, illegal project permissions and fraudulent RERA registration.

The ED said further investigation into the case is continuing.