Industrial plot case: ED raids 14 locations linked to former minister Sunder Sham Arora

The Enforcement Directorate has conducted search operations at 14 locations in Punjab and Chandigarh linked to former Punjab industries and commerce minister Sunder Sham Arora, his son Prateek Arora, and several real estate companies. During the probe into the money laundering case, the investigative agency has seized and sealed mobile phones, digital devices, property documents, and several bank lockers.

According to the ED, the operation, which began on November 2, lasted for over 48 hours. During this time, searches were conducted at Arora's residence in Hoshiarpur, Shivam Hospital, and locations of real estate companies in Chandigarh and Mohali. These companies include SRG Builders, GRG Developers, and Gulmohar Township.

The agency stated that this probe has been initiated on the basis of an FIR registered by the Punjab Vigilance Bureau under the Prevention of Corruption Act. Arora is accused of amassing assets disproportionate to his known sources of income and offering a bribe of one crore rupees to a vigilance officer to hush up the probe. He was arrested in October 2022 while allegedly paying an advance of 50 lakh rupees in Zirakpur.

The ED alleges that while serving as the industries minister between March 2017 and September 2021, Arora kept direct control over the functioning of the Punjab Small Industries and Export Corporation (PSIEC). During this period, he allegedly extended undue favours to private builders in the transfer of expensive industrial plots and, in return, acquired stakes in real estate firms in the name of his son Prateek Arora.

According to the investigative agency, plot number A-32 in Phase-8 of Mohali was transferred to GRG Developers in February 2020 through an auction for 90.56 crore rupees. As per the ED, the amount due to PSIEC under the rules was not paid in full, and the plot was subdivided and sold further even before approvals were granted.

The ED has also claimed that Prateek Arora acquired a 35 percent stake in SRG Builders in September 2020. In addition, land deals made through Gulmohar Township and the funding received for them are also being probed. The agency stated that investigation into the matter is still ongoing.

Nothing has yet been proved in court.

Key developments

• ED raids 14 locations of former minister Sunder Sham Arora and real estate companies
• Search operation lasting over 48 hours in Hoshiarpur, Chandigarh, and Mohali
• Investigative agency seizes digital devices, documents, and seals bank lockers
• Probe underway into Mohali industrial plot allotments and stakes in companies