Ex-minister Sunder Sham Arora favoured realty players, acquired stakes in son’s name, says ED

The Enforcement Directorate (ED) recently accused former Punjab minister Sunder Sham Arora of favoring private real estate players during his tenure from 2017 to 2021. Arora allegedly transferred high-value industrial plots from the Punjab Small Industries and Export Corporation (PSIEC) – an entity he directly controlled – to these companies.

In particular, the ED claims Arora acquired stakes in real estate firms in the name of his son, Parteek Arora. This investigation is part of a broader money laundering probe, which led to the ED searching multiple locations on November 2 and 3, including Arora's residence in Hoshiarpur and various properties linked to several real estate promoters.

The ED recovered items like mobile phones, documents, property records, and digital devices, and froze several bank accounts. The allegations arise from an FIR filed by the Punjab Vigilance Bureau under the Prevention of Corruption Act, 1988, alleging that Arora had assets disproportionate to his income. The ED's investigation began with the tracing of investments and financial transactions associated with several real estate entities.

A key plot in Mohali, Industrial Plot No. A-32, was originally allotted by PSIEC to bankrupt M/s JCT Electronics. The plot was later transferred to M/s GRG Developers and Promoters LLP for Rs 90.56 crore via an auction in February 2020, despite PSIEC being entitled to a portion of the sale value. The transfer was completed before the plot was officially handed over and necessary approvals were obtained, leading to the plot being subdivided and sold to third parties.

The ED also found that Arora approved post-facto approvals to calculate unearned increase and enhanced fees for the plot, which were never fully paid to PSIEC. Moreover, the agency alleges that Arora and his son reportedly offered a Rs 1 crore bribe to a senior Vigilance Bureau officer to settle pending inquiries.