ED Cracks Down on 'Muafi Land': A Pandora's Box of Allegations

The Enforcement Directorate conducted raids in Punjab and Chandigarh related to a money laundering probe involving 'muafi land' misuse by Wahid Sandhar Sugars. The company allegedly breached allotment conditions, causing an estimated Rs 95 crore loss to the state. The land, intended for sugar mill use, is revenue-exempt.

In a significant development, the Enforcement Directorate (ED) launched a series of searches across Punjab and Chandigarh on Wednesday. The raids form part of a money laundering investigation focusing on the alleged misuse of revenue-exempt 'muafi land' by various entities, according to official sources.

At least eight locations were scrutinized under the Prevention of Money Laundering Act (PMLA) concerning Wahid Sandhar Sugars Ltd. The company is under investigation following an FIR by the Punjab Vigilance Bureau for allegedly violating 'muafi land' allotment conditions first set by Maharaja Jagat Jit Singh of Kapurthala State in 1933.

Sources claim the company breached these conditions by mortgaging and selling the land, initially meant for running a sugar mill, thereby causing a Rs 95 crore loss to the state. Efforts to contact the company for comments on the ED's actions have so far been unsuccessful.

(With inputs from agencies.)