The Enforcement Directorate (ED) has secured seven-day custody of Jagmohan Garg following his arrest in connection with its investigation into the Remigate case, involving alleged irregularities in land dealings and the waiver of nearly Rs 57 crore in dues by Greater Mohali Area Development Authority (GMADA). The role of senior Punjab Government officials is also under the scanner.
Jagmohan Garg is the promoter of Tirupati Infraprojects, while Remigate Buildestates (India) Pvt Ltd is a linked company controlled by Tirupati’s promoters, officials of the central agency said. ED is also probing a 2013 CBI case involving alleged bank fraud linked to Garg.
Last month, ED conducted search and survey operations under the PMLA at 26 premises across Delhi, Mohali, Chandigarh, Panchkula and Ludhiana in connection with the case involving Tirupati Infraprojects Pvt Ltd. The action covered the promoters, directors and associated persons of Tirupati Infraprojects Pvt Ltd, Remigate Buildestates (India) Pvt Ltd, MB Infrabuild Pvt Ltd, Mera Baba Reality Associates Pvt Ltd, and Mera Baba Infrastructure Pvt Ltd.
Simultaneously, surveys under Section 16 of the PMLA were conducted at the offices of GMADA and the Punjab Government’s Department of Housing and Urban Development to gather evidence relating to the accused entities. These were subsequently converted into searches to seize incriminating devices and material.
ED initiated its investigation on the basis of a CBI FIR alleging that the promoters of Tirupati Infraprojects Pvt Ltd had committed bank fraud involving Rs 238 crore and siphoned off funds for personal gain.
Further scrutiny ahead of the searches revealed alleged 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) Pvt Ltd and the re-allotment of a cancelled plot.
The case relates to a 1.13-acre food-court site in Sector 62, Mohali, allotted to Remigate Buildestates (India) Pvt Ltd for Rs 32.50 crore in 2015. The company was subsequently granted relief from nearly Rs 57 crore in non-construction charges and penal interest. The concession has since been revoked by the Punjab Government amid the ED investigation.
The 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 ED examining alleged manipulation of land transactions and concessions granted to real estate firms.
The housing department recently reversed the concession granted to Remigate and directed that the outstanding dues be recalculated. The company has been asked to clear the amount within the stipulated period, failing which further action, including resumption of the site, may follow.
ED’s custodial interrogation of Garg is expected to focus on the circumstances surrounding the transactions and the alleged financial irregularities under investigation.
