New Delhi, Aug 22 The Enforcement Directorate (ED) searched eight locations across Punjab and recovered incriminating documents related to a Rs 95-crore fraud allegedly involving illegal sale of a land allotted by former Maharaja of Kapurthala in 1933 for running a sugar mill, an official said on Friday.
The Directorate of Enforcement's Jalandhar Zonal Office conducted the searches on Wednesday in connection with a money laundering case allegedly involving Phagwara-based Golden Sandhar Mills (erstwhile Wahid Sandhar Sugar Mills) and related entities and persons.
The ED initiated the probe under PMLA on the basis of an FIR registered by Vigilance Bureau, Punjab Police, in September 2023 under various sections of IPC, 1860 and Prevention of Corruption Act, 1988. A mill co-owner, his wife and son and nine children others were named in the FIR.
The ED probe is directed toward Golden Sandhar Mills and related entities as they are allegedly involved in the illegal sale and mortgage of Muafi land leased out for 99 years by Maharaja Jagatjit Singh for running a sugar mill.
During the search action, incriminating documents establishing financial trail and uncovering modus operandi were recovered, said the official in a statement.
Investigation by the ED revealed that directors and promoters of Golden Sandhar Mills, had illegally sold and mortgaged Muafi land allotted by then Maharaja of Kapurthala, for the purpose of running a sugar mill, thereby generated huge Proceeds of Crime.
During the search operations, various incriminating records critical in establishing the financial trail and uncovering the modus operandi were seized.
The documents seized by the ED included a copy of the original agreement of 1933, made by Maharaja Jagatjit Singh, as well as later agreements and documents indicating involvement of dummy directors.
During the investigation, the ED searched the mill in Phagwara, residential properties in Khurmapur village and a gym in Phagwara allegedly owned by person who was previously a co-owner of the controversial mill.
The co-owner of the mill had run the unit along with a UK-based NRI who has not returned to the country since the registration of an FIR by the Vigilance Bureau.
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