The investigation into the alleged ₹150-crore Change of Land Use (CLU) fraud in Mohali has taken a significant turn, with the Enforcement Directorate (ED) summoning the Chief Administrator of the Greater Mohali Area Development Authority (GMADA) for questioning. The summons has been issued as part of an ongoing money-laundering probe linked to two controversial real estate projects — Suntec City and Altus Space Builders Pvt Ltd.
Officials said the notice was issued by the ED’s Jalandhar Zonal Office, directing the GMADA chief or an authorised representative not below the rank of a gazetted officer to appear before investigators and provide documents related to the approvals granted to these projects. The development has created a buzz in real estate circles across Mohali, as the probe now appears to be examining the role of the authority responsible for granting CLU permissions.
The summons has been issued under the provisions of the Prevention of Money Laundering Act (PMLA), which empowers investigators to call witnesses, record statements and demand official documents during an investigation. ED officials have asked the GMADA administration to submit the complete file related to approvals granted to Altus Space Builders, details of officials who were involved in the approval process, and records of financial transactions between the company and the authority.
The latest action comes just days after ED teams conducted coordinated raids at multiple locations across Mohali, Chandigarh, New Chandigarh and Patiala. The searches targeted several individuals and companies linked to the projects, including members of the Indian Cooperative Housing Building Society, which promoted the Suntec City development.
During these raids, investigators reportedly recovered around ₹1 crore in cash along with documents believed to contain crucial evidence related to the suspected financial irregularities. In one dramatic incident reported from a high-rise residential tower near Kharar, witnesses claimed that bags filled with bundles of ₹500 notes were thrown from a ninth-floor balcony when ED officials arrived for the search. Authorities later recovered nearly ₹25 lakh from the area.
The ED investigation is based on two FIRs registered by Mohali police. The first case, filed at Mullanpur police station, alleges that fake consent letters bearing forged signatures and thumb impressions of landowners from Palheri village were used to obtain CLU approval for nearly 30.5 acres of land for the Suntec City project. According to the complaint, the housing society collected more than ₹150 crore from its members without executing proper sale deeds. Investigators suspect that a portion of the funds was diverted to other projects.
Following legal proceedings in the Punjab and Haryana High Court, GMADA eventually cancelled the licence granted to the society.
The second case was registered at Phase-11 police station after several homebuyers accused Altus Space Builders of misleading them while selling plots in its “Millennium Court” project. Buyers alleged that the company presented conditional CLU approvals as final permissions and collected large sums of money despite not delivering possession or completing sale deeds. The promoter of the company, Mohinder Singh, has reportedly been declared a proclaimed offender.
Investigators are also examining a property deal involving Dhir Constructions. According to ED officials, the Altus project was allegedly purchased through another entity at a significantly undervalued price of around ₹130 crore, while its estimated market value was believed to be more than ₹300 crore. Authorities suspect the transaction may have been structured to facilitate money laundering.
With the GMADA chief now summoned for questioning, investigators are expected to closely examine whether proper procedures were followed while granting CLU approvals and whether any officials overlooked irregularities or were misled by the developers. The outcome of the questioning could play a key role in determining whether regulatory lapses contributed to one of the region’s most talked-about real estate controversies.