ED unearths Rs 95-crore trail in illegal Phagwara mill land sale
Unlock Exclusive Insights with The Tribune Premium
Take your experience further with Premium access. Thought-provoking Opinions, Expert Analysis, In-depth Insights and other Member Only BenefitsThe Enforcement Directorate (ED) has unearthed alleged financial irregularities amounting to nearly Rs 95 crore during searches at eight locations across Punjab in a case linked to the illegal sale of land originally allotted in 1933 for the operation of a sugar mill.
Officials said the raids, conducted by the ED, Jalandhar Zone, earlier this week, resulted in the seizure of a number of incriminating records that are expected to play a key role in tracing the financial trail of the transactions.
The case centres on land in Phagwara leased nearly a century ago by the then Maharaja of Kapurthala, Jagatjit Singh, for 99 years to run a sugar mill. According to investigators, directors and promoters of Golden Sandhar Mills — earlier known as Wahid Sandhar Sugar Mills — are suspected of selling and mortgaging the land in violation of the lease conditions, thereby generating proceeds that the agency believes constitute the product of crime.
Leased 99 yrs ago
The case centres on land in Phagwara leased nearly a century ago by the then Maharaja of Kapurthala, Jagatjit Singh, for 99 years to run a sugar mill.
AdvertisementAccording to investigators, directors and promoters of Golden Sandhar Mills are suspected of selling and mortgaging the land in violation of the lease conditions
The investigation under the Prevention of Money Laundering Act (PMLA) was initiated after the Punjab Vigilance Bureau registered an FIR in September 2023, naming a mill co-owner, members of his family, and several others under provisions of the Indian Penal Code and the Prevention of Corruption Act. Since then, the probe has focused on the role of individuals and entities linked to the mill in the transfer of property rights and the creation of mortgages against the land.
Among the documents recovered during the searches were a copy of the original 1933 lease agreement and subsequent contracts that investigators say point to the involvement of proxy directors in the company. Raids were carried out not only on the mill premises in Phagwara but also at residential properties in Khurmapur village and at a gym in Phagwara allegedly owned by a former co-owner. That co-owner is reported to have managed the mill in partnership with a UK-based non-resident Indian who has not returned to the country since the registration of the vigilance case.
Officials said the seized material was crucial to establishing how the transactions were structured and to uncovering the modus operandi of the alleged fraud. The ED has said its probe would continue to determine the extent of the financial trail and the accountability of those involved.