Chandigarh, Aug 4 (PTI) The Enforcement Directorate on Tuesday conducted a search and survey operation at multiple locations in Punjab and Chandigarh as part of a money laundering investigation linked to alleged irregularities in the Punjab Small Industries and Export Corporation (PSIEC), officials said.

The corporation is tasked to promote industries in Punjab.

The central agency raided about 11 premises in Chandigarh, in addition to locations in Ludhiana, Patiala, Amritsar and Gurdaspur in Punjab, the officials said.

A survey was conducted under the Prevention of Money Laundering Act (PMLA) at the PSIEC office in Chandigarh, also known as 'Udyog Bhawan', they said.

The premises searched included those belonging to PSIEC Executive Director Bhai Sukhdeep Singh, retired PSIEC chief general manager Surendra Pal Singh, retired general manager Jaswinder Singh Randhawa, another retired officer named Savtej Singh apart from some other corporation officials, property dealers and benamidars (in whose name a benami asset is being held).

The PMLA case stems from a March 2024 FIR registered by the Punjab Vigilance Bureau in Mohali on charges that certain officials of PSIEC and private persons connived with property dealers to allot expensive plots in the names of relatives and friends.

The ED is investigating charges that fake firms and fraudulent addresses were used by private persons while applying for industrial plots given through the PSIEC. Private persons accomplished this through "close connections" with the PSIEC officials, according to official sources.

The agency is also investigating the alleged role of PSIEC officials and private persons for "diversion" and change of land use of industrial plots allotted in Ludhiana by some real estate developers and some prominent business groups.

The real estate developers "diverted" the industrial plot to residential use generating "windfall" profit for themselves while causing a loss to the state exchequer, the officials said.

They said a company linked to arrested Punjab minister Sanjeev Arora is also under the ED's scanner as part of this probe.

Arora was arrested by the ED a few months ago in a money laundering case and is currently lodged in jail. He has denied any wrongdoing. PTI NES KVK KVK

Money-laundering investigation examines alleged fraudulent industrial plot allotments, benami holdings and diversion of plots to residential use. A money-laundering investigation under the Prevention of Money Laundering Act examines alleged irregularities in industrial-plot allotments involving corporation officials, private persons, property dealers and alleged benamidars. The inquiry concerns alleged use of fictitious firms and false addresses to obtain plots, allotments to relatives and associates, and alleged diversion or change of land use from industrial to residential purposes. These activities are alleged to have generated private gains while causing loss to the public exchequer.