The Enforcement Directorate (ED) has intensified its investigation into the Suntec City housing project in New Chandigarh, focusing on alleged fraudulent change of land use (CLU) approvals. Recent raids in Mohali and Kharar targeted real estate developers and liaison agents linked to the project, uncovering a pattern of forged consent letters and disputed land ownership. The Indian Co-operative House Building Society Ltd, which applied for CLU permission for 123 acres, reportedly owned only 30% of the land in question. Complaints from local landowners have prompted a police investigation into the authenticity of signatures on consent letters.

In response to the controversy, the Punjab housing department has initiated a review of the approvals granted. Notably, the Punjab government revoked CLU permissions for 30.49 acres in August 2024, reducing the project area to 92.68 acres. The ED claims that promoters Suresh Kumar Bajaj and Ajay Sehgal prepared forged documents for land belonging to 15 landowners, collecting over ₹150 crore (approximately $18 million USD) from society members without executing sale deeds. The investigation continues as the ED examines the role of officials involved in granting these approvals.