'Muafi land' case: ED conducts searches in Punjab, Chandigarh in money laundering probe

Jalandhar: The Enforcement Directorate (ED) on Wednesday conducted searches in Punjab and Chandigarh as part of a money laundering probe into alleged misuse of a 'muafi land' by certain entities, official sources said.

At least eight locations are being raided under the provisions of the Prevention of Money Laundering Act (PMLA) in the case against Wahid Sandhar Sugars Ltd. and related persons, the sources said.

The company or its representatives could not be contacted immediately for a comment on the ED action.

The ED investigation stems from an FIR of the Punjab Vigilance Bureau alleging the said company "misused" the 'muafi land' which was initially allotted by Maharaja Jagat Jit Singh of Kapurthala State in 1933.

A 'muafi land' is exempt from paying revenue.

"The said muafi land was intended to be used for running a sugar mill as per the conditions of allotment and mortgage. Sale of the said land was not allowed," a source said.

Wahid Sandhar Sugars acquired the rights to run the sugar mill on the 'muafi land' in 2000, and the company "breached" the conditions and mortgaged and sold the said land, the source added.

This caused a loss to the state government, and the estimated "proceeds of crime" in this case is about Rs 95 crore, as per the central probe agency.