The ED, Jalandhar Zonal Office, conducted search operations at 11 premises across Chandigarh, Amritsar, Gurdaspur, and Ludhiana, and carried out a survey at the PSIEC office on August 4, 5, and 6, 2026. These actions were taken under the PMLA, 2002, in connection with a money laundering investigation regarding the illegal allotment of industrial plots by PSIEC officials to their relatives, friends, and other associates. During the searches, various incriminating documents, digital devices, and unaccounted cash amounting to ₹12.15 lakh were recovered and seized. Additionally, funds totaling approximately ₹4.01 crore in the bank accounts of PSIEC officials—namely Surinder Pal Singh (Retired Chief General Manager) and Jaswinder Singh Randhawa (Retired General Manager)—were frozen.
The Enforcement Directorate (ED), Jalandhar Zonal Office, conducted searches at 11 premises in Chandigarh, Amritsar, Gurdaspur and Ludhiana and surveyed the office of Punjab Small Industries and Export Corporation (PSIEC) on 04.08.2026, 05.08.2026 and 06.08.2026 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with a money laundering investigation into the illegal allotment of industrial plots by officials of the Punjab Small Industries and Export Corporation (PSIEC) in the names of their relatives, friends and other associates. During the searches, various incriminating documents and digital devices were recovered and seized from several premises.
The ED initiated the investigation on the basis of an FIR registered by the Police Station Vigilance Bureau against several PSIEC officials and other private individuals under various sections of the Prevention of Corruption Act, 1988 (as amended by the PC Act, 2018) and the Indian Penal Code (IPC), 1860.
The ED investigation revealed that industrial plots were allotted to individuals with no knowledge of technical industries. Private individuals used fictitious firms and fake addresses in their applications for industrial plots, and through close connections with PSIEC officials, these individuals were allotted industrial plots. Possession of the plots was not given within the stipulated timeframe and was delayed for several years. This intervening period was considered a zero period, and allotment dates were extended for several years under payment schemes at zero interest rates.
The investigation revealed that these illegal allotments were made in exchange for substantial bribes, which were obtained directly or indirectly by officials through financial arrangements involving cash transactions and transfer of funds at various levels. Many of the allotments were made in the names of shell entities and fictitious firms, which were subsequently used to sell the allotted plots to third-party outsiders at prevailing market rates, generating substantial sums of money. Furthermore, it was revealed that plots allotted for setting up industries were subdivided and used for residential/commercial plotting.
During the search, various incriminating evidence was collected, and unaccounted cash worth ₹12,15,000 was recovered and seized. Additionally, approximately ₹4.01 crore in the bank accounts of PSIEC officials Surinder Pal Singh, retired Chief General Manager, and Jaswinder Singh Randhawa, retired General Manager, was frozen.
Further investigation is underway.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.