ED Uncovers Rs 95-Crore Financial Trail in Illegal Phagwara Mill Land Sale

Phagwara, Punjab :- The Enforcement Directorate (ED) has uncovered alleged financial irregularities worth nearly Rs 95 crore during searches at eight locations across Punjab in connection with the illegal sale of land originally allotted in 1933 for operating a sugar mill.

Details of the Case

The land in question, located in Phagwara was leased nearly a century ago by the then Maharaja of Kapurthala, Jagatjit Singh for 99 years to operate a sugar mill. Investigators allege that directors and promoters of Golden Sandhar Mills (formerly Wahid Sandhar Sugar Mills) sold and mortgaged the property in violation of the lease terms, generating proceeds considered as proceeds of crime under the Prevention of Money Laundering Act (PMLA).

ED Raids and Evidence

The ED raids, conducted earlier this week, resulted in the seizure of key documents, including:

Original 1933 lease agreement

Contracts highlighting involvement of proxy directors

Records from mill premises, residential properties in Khurmapur village, and a gym allegedly owned by a former co-owner

Investigators believe these documents will help trace the financial trail, reveal how the transactions were structured, and expose the modus operandi of the alleged fraud.

Background of the Investigation

The investigation began after the Punjab Vigilance Bureau registered an FIR in September 2023, naming a mill co-owner, his family members, and several others under provisions of the IPC and Prevention of Corruption Act. The probe has focused on property transfers and creation of mortgages linked to the mill.

Officials said the ED probe will continue to determine the full extent of the financial irregularities and hold accountable those involved in the illegal transactions.