Ex-minister Sunder Sham Arora favoured realty players, acquired stakes in son’s name, says ED

Days after searching 14 locations in Punjab and Chandigarh, the Enforcement Directorate (ED) on Friday alleged that Sunder Sham Arora, during his tenure as Punjab industries and commerce minister from March 2017 to September 2021, extended undue favours to private real estate players in the transfer of high-value industrial plots belonging to the Punjab Small Industries and Export Corporation (PSIEC), which he directly controlled.

The ED further alleged that Arora acquired stakes in real estate companies in the name of his son Parteek Arora.

The findings form part of a money laundering investigation, in which the ED on November 2 and 3 searched 14 locations, including Arora’s residence in Hoshiarpur, Shivam Hospital and locations linked to SRG Builders and Promoters Pvt Ltd, GRG Developers and Promoters LLP and Gulmohar Township India Pvt Ltd, besides their promoters, directors and associates.

The searches resulted in the recovery and seizure of mobile phones, incriminating documents, property documents, records relating to PSIEC plots and digital devices, and freezing of bank lockers, the ED said, adding that further investigation is underway.

According to the ED, the investigation stems from an FIR registered by the Punjab Vigilance Bureau under the Prevention of Corruption Act, 1988, against Sunder Sham Arora over allegations of possessing assets disproportionate to his known sources of income.

An ED spokesperson said during the searches, the agency traced investments and financial transactions involving several real estate entities, including a Mohali industrial plot transferred for Rs 90.56 crore, which was subdivided and sold to third parties, even before possession and mandatory approvals were obtained.

Mohali industrial plot under scanner

A key transaction under investigation relates to Industrial Plot No. A-32 at Phase 8 in Mohali, originally allotted by PSIEC to M/s JCT Electronics, which is now bankrupt. The plot was transferred to M/s GRG Developers and Promoters LLP for Rs 90.56 crore through an auction conducted by the Asset Reconstruction Company (India) Limited (ARCIL) in February 2020.

Story continues below this ad

The ED said under the terms of the lease deed, PSIEC was entitled to 50 per cent of the sale value as unearned increase, besides enhanced land cost and transfer fee, but these dues were allegedly never fully paid to PSIEC.

Even after the tripartite agreement between PSIEC, ARCIL and GRG was cancelled in August 2021, no steps were taken to cancel the lease deed or resume the plot, the agency said.

The ED said, “Arora approved proposals for post-facto approvals relating to the calculation of unearned increase and enhanced fees. He was directly involved in the affairs of the plot.”

Bank records, according to the ED, also showed that Arora, through his son Parteek, had invested in the purchase of the plot. “Even before the possession of the plot was taken and the necessary approvals from PSIEC and the Real Estate Regulatory Authority (RERA) were obtained, the land was subdivided and sold to third parties, defeating the purpose of allotting the land for establishing industry and generating proceeds of crime through the bifurcation and sale of plots,” the agency said.

Story continues below this ad

The agency said the case also involved an alleged attempt by Arora to offer Rs 1 crore bribe to a senior Vigilance Bureau officer to settle inquiries pending against him. On October 15, 2022, Arora was arrested red-handed in Zirakpur, while allegedly handing over Rs 50 lakh in cash as an advance payment.

Son’s stakes in real estate firms examined

The ED said the investigation revealed that Parteek Arora acquired a 35 per cent shareholding in M/s SRG Builders and Promoters Pvt Ltd in September 2020. “The company is a sister concern of Deepak Garg and his brother Devi Dayal Garg, who are also associated with M/s GRG Developers and Promoters LLP.”

“Parteek Arora is also a partner, along with the owners of GRG Developers and Promoters LLP and their family members, in M/s Aggarwal Buildtech, M/s SS Developers and M/s Land Developers,” the agency said.

Another transaction being examined involves M/s Gulmohar Township India Pvt Ltd.

Story continues below this ad

According to the ED, the company began making payments to M/s Signify Innovations India Ltd in August 2020 and paid Rs 27.5 crore even before an Agreement to Sell was executed on October 23, 2020. At that time, the mandatory no-objection certificate (NOC) from PSIEC had not been obtained, the agency said.

The ED said, “An analysis of bank accounts revealed that payments for the plot and the stamp duty for its registration were substantially funded by Sanjeev Kumar Juneja, a close associate of Jagdeep Singh, director of Gulmohar Township India Pvt Ltd. Juneja transferred approximately Rs 28.65 crore to the company between August 2020 and February 2021.”