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ED seeks record of GMADA’s Rs 40-cr waiver to Mohali realtor

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Widening its investigation into alleged irregularities in Punjab’s real estate sector, the Enforcement Directorate (ED) has sought records relating to the waiver of over Rs 40 crore granted to private realtor Remigate, which is developing a food court in Mohali.The waiver, including penal interest, was granted after the Greater Mohali Area Development Authority (GMADA) failed to provide basic amenities at the 1.13-acre site.The ED has directed officials to submit the complete record in digitised form. The officials were summoned to Delhi in connection with the agency’s probe into alleged irregularities in change of land use clearances granted to private developers. The ED has also sought details of another project promoted by Remigate.After receiving the waiver, the realtor reportedly filed an appeal before the Secretary, Housing and Urban Development, seeking additional relief.Housing Department officials said the site, allotted to Remigate Builders nine years ago for a food court in Sector 62, Mohali, was not handed over in an encumbrance-free condition despite repeated representations by the allottee. Instead, GMADA issued a show-cause notice over non-payment of pending dues.Sources said the site was auctioned in September 2015 at a reserve price of Rs 32.50 crore. The allottee paid 20 per cent of the amount and the first instalment of Rs 9.87 crore. The department later acknowledged that deficiencies on the part of the Estate Office delayed execution of the commercial project.Based on an Estate Office report, the authority revised the effective date of allotment to February 2022. It also observed that, from 2016 onwards, estate officers and chief administrators have violated provisions of the Punjab Regional Town Planning and Development Act, delaying recovery of dues.The ED has also uncovered an alleged regulatory loophole that developers are allegedly exploiting to alter layout plans by using provisions under the Real Estate Regulatory Authority.Agency sources claimed that, unlike Tamil Nadu and Maharashtra, where mid-project layout changes are tightly regulated, Punjab’s mechanism has allegedly been misused to benefit developers at the expense of homebuyers.The issue came to light during the ED’s money laundering probe into the alleged fraudulent issuance of CLU clearances for the Jattvibetec City project in Mullanpur. The investigation has already led to the arrest of Ajay Sehgal, promoter and secretary of the Indian Cooperative House Building Society (ICHBS).

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