Guava Orchard Compensation Scam: ED Seizes Rs. 3.89 Crore

Directorate of Enforcement (ED), Jalandhar has carried out search operations on 27.03.2024
at 26 residential/ business premises related to Bhupinder Singh and other private persons along with
two Senior IAS officers, officers of revenue & horticulture department in various districts across state
of Punjab viz. Ferozepur, Mohali (SAS Nagar), Bathinda, Barnala & Patiala and Chandigarh under the
provisions of Prevention of Money Laundering Act (PMLA), 2002 in relation to Guava Orchard
Compensation scam.

“During the search, authorities recovered and seized various incriminating pieces of evidence, property documents, mobile phones, and cash worth Rs.3.89 Crore.”

ED initiated investigation on the basis of FIR registered by Vigilance Bureau, Mohali, Punjab
under various sections of IPC, 1860 and Prevention of Corruption Act, 1988 against Bhupinder Singh,
Jasmine Kaur and others.

ED investigation revealed that in the year 2016 Greater Mohali Area Development Authority
(GMADA), Punjab started the process of acquiring land of various villages of SAS Nagar, Punjab for
“Setting up Aerotropolis Residential Project Near IT city and Aerocity in Sahibzada Ajit Singh Nagar”.

Private persons close to officers of GMADA, Revenue department & Horticulture department were aware that compensation for fruit-bearing trees (Guava trees) would undergo separate assessment from the value of acquired land, and additional compensation would be granted based on the quality, age, and various other parameters related to Guava trees planted.

“The beneficiaries, officers of GMADA, Revenue, and Horticulture department colluded amongst themselves and created false/forged records and reports regarding the existence, age, quality, and density of guava trees to avail wrongful compensation. “So far, investigators have identified approximately Rs. 140 Crore as the total Proceeds of Crime (PoC). Further investigation is ongoing.