Chandigarh : The Enforcement Directorate has intensified its investigation into alleged irregularities in the allotment of industrial plots in Punjab, freezing around ₹4 crore held in bank accounts linked to two retired officials of the Punjab Small Industries and Export Corporation.
The latest action follows searches at 11 locations across Punjab and Chandigarh as part of a money-laundering investigation into alleged manipulation of industrial plot allotments.
The two former officials under scrutiny are Surinder Pal Singh, a former Chief General Manager of PSIEC, and Jaswinder Singh Randhawa, a former General Manager. The ED has said that approximately ₹4 crore in their bank accounts has been frozen in connection with the case.
The investigation relates to allegations that industrial plots were allotted to individuals or entities that allegedly did not meet the required criteria. Investigators are examining whether fake firms, fictitious addresses and connections with officials were used to secure valuable industrial land.
The case has acquired importance because industrial land is a limited and valuable public resource. Such land is intended to support manufacturing, create employment and attract investment. If plots are obtained through fraudulent means and later diverted towards commercial or residential purposes, the intended industrial-development objective can be undermined.
According to information emerging from the investigation, some applicants allegedly used firms with questionable credentials to obtain plots. Investigators are also examining whether officials helped applicants exploit procedural loopholes.
One area under scrutiny concerns delays in taking possession of allotted plots. Investigators are examining allegations that certain beneficiaries were able to take advantage of provisions treating delays as a “zero period”, potentially allowing them to avoid financial liabilities during the period before possession.
The ED’s investigation originated from a case registered by the Punjab Vigilance Bureau. The central agency is now examining whether alleged corruption generated proceeds that were subsequently transferred, concealed or otherwise dealt with in a manner attracting provisions of the Prevention of Money Laundering Act.
The agency has also reportedly seized unaccounted cash during its searches. The latest action is therefore not simply an administrative inquiry into allotment procedures but a financial investigation into the alleged movement of money.
The political significance of the case is considerable.
Punjab’s government has been actively seeking new investment and portraying the state as an emerging destination for industrial activity. The credibility of institutions responsible for allocating industrial land is therefore crucial.
For businesses, especially small and medium enterprises, access to industrial plots can determine whether a project becomes operational. If land is allegedly diverted towards speculation rather than productive investment, genuine entrepreneurs can be disadvantaged.
The investigation could also prompt wider questions about the functioning of PSIEC and the monitoring mechanisms used to ensure that industrial plots are actually utilised for their approved purpose.
At the same time, it is important to distinguish allegations from established wrongdoing. The ED’s searches, seizures and freezing of bank accounts represent investigative steps; they do not by themselves establish guilt.
The agency will ultimately have to demonstrate the financial trail, establish the role of individual officials and beneficiaries and prove whether the money involved constituted proceeds of crime.
The case could widen if investigators identify additional beneficiaries or intermediaries.
For the Punjab government, the episode also presents an administrative challenge. Stronger verification of applicants, digital monitoring of plot allotments, regular physical inspections and strict action against diversion of industrial land could help prevent similar allegations in the future.
The industrial plot case therefore has implications extending beyond the individuals currently under investigation. It touches upon governance, investment policy, public land management and the credibility of Punjab’s industrial institutions.
As the investigation proceeds, attention will focus on whether investigators can establish a larger network, identify the ultimate beneficiaries and determine the extent of the alleged financial irregularities.
The outcome could have both legal and political consequences, particularly at a time when Punjab is preparing for another major electoral contest
