ED freezes ₹4.01 crore in PSIEC plot-allotment money-laundering probe
Searches at 11 premises across Chandigarh and Punjab yield incriminating documents, digital devices and ₹12.15 lakh in unaccounted cash
(By Syed Ali Taher Abedi)
Chandigarh: 13, August,2026 – The Directorate of Enforcement (ED), Jalandhar Zonal Office, has intensified its money-laundering investigation into the alleged illegal allotment of industrial plots by officials of the Punjab Small Industries & Export Corporation (PSIEC), freezing bank funds of approximately ₹4.01 crore and seizing ₹12.15 lakh in unaccounted cash.
The searches were conducted on August 4, 5 and 6 at 11 premises in Chandigarh, Amritsar, Gurdaspur and Ludhiana.
The agency also carried out a survey at the PSIEC office under the provisions of the Prevention of Money Laundering Act, 2002.
Several incriminating documents and digital devices were recovered and seized during the operations.
The frozen funds are held in bank accounts linked to Surinder Pal Singh, retired Chief General Manager, and Jaswinder Singh Randhawa, retired General Manager of PSIEC, according to the ED.
Probe follows Vigilance Bureau FIR
The ED initiated its investigation on the basis of an FIR registered by the Punjab Vigilance Bureau against several PSIEC officials and private individuals under provisions of the Prevention of Corruption Act, 1988, as amended in 2018, and the Indian Penal Code, 1860.
According to the agency, its investigation has revealed that industrial plots meant for setting up industries were allegedly allotted in the names of relatives, friends and associates of PSIEC officials.
Several beneficiaries were purportedly unconnected with technical industries, while fake firms and fictitious addresses were allegedly used in applications submitted for the allotment of plots.
The ED has alleged that the allotments were facilitated through close connections between private beneficiaries and PSIEC officials. In several instances, possession of the plots was allegedly delayed for years, with the intervening period treated as a “zero period”.
The allotment dates were subsequently shifted forward, enabling beneficiaries to secure extended payment schedules without interest for the delayed period.
Alleged bribery and diversion of plots
The agency’s enquiries indicate that the alleged illegal allotments were made in exchange for substantial bribes, allegedly received by officials directly or indirectly through cash transactions and layered financial arrangements.
Several plots were allegedly allotted in the names of shell entities and fictitious firms and later sold to third parties at prevailing market rates, thereby generating substantial proceeds.
The ED has further alleged that plots allotted for industrial purposes were subsequently bifurcated and diverted for residential or commercial development.
The agency said the search operations resulted in the recovery of documentary and digital evidence relating to the suspected proceeds of crime. The ₹12.15 lakh cash seizure and freezing of approximately ₹4.01 crore in bank accounts form part of the financial trail being examined in the case.
Further investigation is in progress. The allegations are subject to proof in accordance with law, and no finding of criminal liability has been recorded against any accused at this stage.
