ED searches 7 sites linked to ex-MLA Deep Malhotra

Jalandhar/Ferozepur/Faridkot, July 16

The Jalandhar zone of the Enforcement Directorate conducted searches at seven locations connected with liquor baron and former MLA Deep Malhotra. The searches were conducted in connection with alleged violation of the Prevention of Money Laundering Act related to environmental norms.

The searches were held in Faridkot, Ferozepur, Delhi and Madhya Pradesh at places linked to Malbros International Private Limited, a liquor manufacturing company owned and controlled by Deep Malhotra, his son Gautam Malhotra and their family. It is part of the Oasis Group of Companies.

The teams entered the plant premises at Ferozepur around 6 am and reportedly took the entire record of the plant in their custody. Simultaneously, the teams also raided the office-cum-residence of Gautam Malhotra in Faridkot.

A criminal case was lodged against the company by the Punjab Pollution Control Board for allegedly violating provisions of the Water (Prevention and Control of Pollution) Act, 1974.

Villages situated within 4-km periphery of the liquor manufacturing unit in Zira tehsil of Ferozepur have been reportedly getting contaminated water. Residents of these villages have been protesting at Mansurwala village since July 2022. They have alleged that the company has contaminated the soil and groundwater in and around its factory by dumping industrial effluents and discharging the same into the earth by way of borewells.

The issue was also raised in Parliament after which the Central Pollution Control Board and the Central Ground Water Board conducted field visits at the Zira factory. Their inspection report also revealed violation of environmental norms by the factory on multiple grounds.

Sources in the ED said any offence under the Water (Prevention and Control of Pollution) Act, 1974, was a scheduled offence under the Prevention of Money Laundering Act (PMLA), 2002.

According to a “panchnama” report prepared by the ED at Faridkot, a driver and security guard at the premises said that one Navdeep Monga was the office head there. The driver was asked to make a phone call to Navdeep. He took the call and assured cooperation. However, he switched off his phone after that and repeated attempts to contact him again did not succeed. Thereafter, the ED team started the search proceedings and seized Rs 38.15 lakh.

At Zira, Roman Brar, a member of the Sanjha Morcha spearheading the protest against the ethanol plant, alleged the plant management had also been involved in money laundering. The plant should have been closed long back, but the government authorities had been desisting from issuing written orders in that regard due to reasons best known to them.

On January 17 last year, CM Bhagwant Mann had announced the closure of this plant through a video message uploaded on his social media account. However, the protesters had refused to lift the dharna and had sought written government orders, which were still awaited.

On May 18, 2023, teams of the Income Tax Department had also conducted raids at this plant and residences of plant officials. In February last year, the ED had arrested Malhotra’s son Gautam in connection with the Delhi excise policy case. ED officials, however, maintained that this was a separate case.

PMLA case linked to pollution norms

• Villages situated near the liquor manufacturing unit in Zira tehsil of Ferozepur have been getting contaminated water
• Residents of these villages have been protesting at Mansurwala village since July 2022
• They allege that the company has contaminated soil and groundwater in and around its factory by dumping industrial effluents into the earth through borewells
• Sources in the ED say that any offence under the Water (Prevention and Control of Pollution) Act, 1974, is a scheduled offence under the Prevention of Money Laundering Act (PMLA)

Premises located in Punjab, Delhi, MP

• The searches were held in Faridkot, Ferozepur, Delhi and Madhya Pradesh at places linked to Malbros International Private Limited
• It is a liquor company owned and controlled by Deep Malhotra, his son Gautam Malhotra and their family