CHANDIGARH: The Enforcement Directorate (ED) has secured seven days of custody of Jagmohan Garg following his arrest in connection with its investigation into the Remigate case, which involves alleged irregularities in land dealings and the waiver of nearly Rs 57 crore in dues by the Greater Mohali Area Development Authority (GMADA).
The role of senior Punjab government officials is also under scrutiny. Garg’s custodial interrogation is expected to focus on the circumstances surrounding the transactions and the alleged financial irregularities under investigation.
Jagmohan Garg is the promoter of Tirupati Infraprojects, while Remigate Buildestates (India) Private Limited is a linked company controlled by Tirupati’s promoters. The ED is also probing a 2013 CBI case involving alleged bank fraud linked to Garg, sources said.
In September, the ED conducted search and survey operations under the Prevention of Money Laundering Act (PMLA) at 26 premises across Delhi, Mohali, Chandigarh, Panchkula and Ludhiana in connection with the case involving Tirupati Infraprojects Private Limited.
The searches targeted the promoters, directors and associated persons of Tirupati Infraprojects Private Limited, Remigate Buildestates (India) Private Limited, MB Infrabuild Private Limited, Mera Baba Reality Associates Private Limited and Mera Baba Infrastructure Private Limited.
Simultaneously, searches were conducted at the offices of GMADA and the Department of Housing and Urban Development to seize incriminating devices and material under Section 16 of the PMLA.
The case relates to a 1.13-acre food-court site in Sector 62, Mohali, allotted to Remigate Buildestates (India) Private Limited for Rs 32.50 crore in 2015. The company was subsequently granted relief from nearly Rs 40 crore in non-construction charges and penal interest. The concession has since been revoked by the Punjab government amid the ED investigation.
The investigating agency has been examining the circumstances under which the waiver was approved, the role of officials involved in the decision-making process and the financial implications for the state exchequer. The investigation has also brought GMADA’s functioning under scrutiny, with the ED examining alleged manipulation of land transactions and concessions granted to real estate firms.
Sources said the ED initiated its investigation on the basis of a CBI FIR alleging that the promoters of Tirupati Infraprojects Private Limited had committed bank fraud involving Rs 238 crore and siphoned off funds for personal gain.
Further scrutiny ahead of the searches allegedly revealed extensive cash dealings, bogus share premiums and other financial irregularities. The investigation also pointed to a wider pattern of alleged irregularities involving Tirupati Infraprojects promoters Jagmohan Garg and Manmohan Garg, including the NSEL scam, the alleged illegal waiver of statutory dues by GMADA in the case of Remigate Buildestates (India) Private Limited, and the re-allotment of a cancelled plot.
