The Enforcement Directorate (ED) has seized ₹1.75 crore in unaccounted cash during searches at 16 locations in Pathankot as part of an ongoing money laundering investigation into an alleged illegal mining and panchayat land scam involving 91.75 acres (734 kanal and one marla) of shamlat land situated near the International border.
Event Context
The ED also referred to an ongoing public interest litigation before the Punjab and Haryana high court concerning illegal mining in the border districts of Pathankot and Gurdaspur. The court had earlier observed that mining activities along the Ravi near the international border could adversely impact national security by facilitating infiltration, drug smuggling and activities of anti-national elements. Despite court directions to curb such mining, the ED alleged that the activity has continued unabated.
Player Focus
The ED claimed that Kuldeep Singh was appointed as ADC (rural development), Pathankot, on the recommendation of a Punjab minister just four days before his superannuation. It further alleged that he passed the disputed order in favour of private individuals a day before retiring from government service.
The agency said it has sought the assistance of the Survey of India to conduct a scientific assessment of the extent of illegal mining on the disputed land. The investigation into the role of public servants, mining operators and other beneficiaries is continuing.
Team Analysis
The raids, conducted on July 16 under the provisions of the Prevention of Money Laundering Act (PMLA), covered several premises, including the residence and office of Vijay Kumar Kataruchak, considered close to Punjab cabinet minister Lal Chand Kataruchak.
During the searches, the ED recovered several incriminating documents allegedly linked to illegal mining activities. Besides seizing ₹1.75 crore in cash, the agency also froze bank accounts with a combined balance of ₹91.34 lakh under Section 17(1A) of the PMLA.
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According to the ED, the investigation pertains to the alleged illegal excavation of sand and riverbed material from village common land in Bhattian village, under the jurisdiction of the Gol village panchayat in Pathankot district. The agency alleges that the mineral-rich land was illegally transferred to private individuals through an order passed by the then additional deputy commissioner (ADC), Kuldeep Singh, shortly before his retirement.
The federal agency also searched premises linked to M/s Shree Sai Stone Crusher and Screener, M/s Shiv Shankar Stone Crusher, and their associated entities. According to the ED, these firms and their management were involved in the illegal excavation, purchase, sale and transportation of sand and riverbed material without obtaining the necessary permissions or paying applicable taxes and royalty, causing substantial losses to the state exchequer.
The investigation further revealed that trucks, tippers and excavators allegedly operated extensively during the night, with some vehicles reportedly lacking registration number plates, indicating an organised illegal mining network.
The money laundering case originates from a first information report (FIR) registered by the Punjab Vigilance Bureau on August 9, 2023, against retired ADC Kuldeep Singh and eight others for the alleged illegal transfer of village common land to private beneficiaries. The FIR was lodged under Sections 409, 420 and 120-B of the Indian Penal Code (IPC), along with provisions of the Prevention of Corruption Act.
According to the vigilance bureau, Kuldeep, while serving as ADC (development), passed an order on February 27, 2023, in a long-pending land dispute titled Veena Parmar and others versus Gram Panchayat, Gol village. The order allegedly paved the way for the transfer of 734 kanal and one marla of shamlat land to private individuals.
The beneficiaries named in the FIR include Veena Parmar, Inderdeep Kaur, Bharati Banta, Tarsem Rani, Balwinder Kaur, Manjit Kaur and Parveen Kumari. Two accused — Inderdeep Kaur and Bharati Banta — were earlier arrested after allegedly benefiting from nearly 29 acres of panchayat land.
