Widening its investigation into the alleged cases of money laundering by builders, the Enforcement Directorate (ED) has sought comprehensive records of the Chandigarh Royale City project from GMADA, amid payment default allegations.
A few days ago, ED had conducted raids at multiple premises linked to M/s Chandigarh Royale City Promoters Pvt Ltd (CRCPL) and the Royale Estate Group in Chandigarh, Zirakpur and other parts of Punjab.
The promoters of the companies, Praveen Kansal and Neeraj Kansal, who were arrested on May 30 in Delhi, have been remanded to judicial custody.
Sources said GMADA has been asked to give a detailed requisition for documents and clarifications regarding the change of land use (CLU) licence and colony development licence granted to M/s Chandigarh Royale City Private Limited for a residential project in Karala village, Dera Bassi tehsil, Mohali.
This investigation comes against the backdrop of long-standing disputes between the promoter and GMADA over external development charges and payments. The company had earlier claimed to have deposited around Rs 32.76 crore, while alleging discrepancies in demands from the authority.
In July 2025, Punjab Police registered a case involving allegations of fraud, criminal conspiracy, and submission of dishonoured cheques worth approximately Rs 32.67 crore related to statutory liabilities for this project.
The Enforcement Directorate (ED) subsequently launched raids in May 2026 at premises linked to the Royale Estate Group and promoters in Chandigarh, Mohali, and other areas under the Prevention of Money Laundering Act (PMLA).
Investigators are examining alleged diversion of project funds alongside outstanding dues to GMADA.
The sources said officials of the GMADA accounts branch and the Department of Town and Country Planning are regularly being called to the ED office.
