The Enforcement Directorate (ED) conducted extensive searches on Tuesday, April 15, 2025, at the residence of Aam Aadmi Party (AAP) MLA Kulwant Singh in Mohali, Punjab, as part of a money laundering investigation linked to the alleged ₹48,000 crore Pearl Agrotech Corporation Limited (PACL) scam. The operation involved over 15 locations, including Singh's residence and the Gian Sagar Medical College and Hospital in Patiala, which was established by the Pearl Group.
Kulwant Singh, aged 63, is not only a prominent politician but also the promoter of Janta Land Promoters Limited (JLPL), and is reported to be the richest MLA in Punjab, with assets exceeding ₹1,000 crore. According to sources within the ED, the searches were initiated due to suspicions of financial connections between Singh and individuals associated with the PACL network.
The ED's operation began early in the morning, with teams from Delhi arriving at Singh's upscale residence located in the JLPL locality of Sector 94. Reports indicate that the ED officials spent over 14 hours at Singh's home, during which they interrogated the MLA for more than five hours. Singh was not present at the time of the raid, but family members were questioned, and various financial records, documents, and digital devices were examined.
Sources revealed that the investigation into PACL stems from a Central Bureau of Investigation (CBI) FIR against PACL India Limited and its directors, including the late Nirmal Singh Bhangoo. The PACL is accused of orchestrating a Ponzi scheme that defrauded countless investors by promising unrealistic returns on agricultural land investments. Investigators allege that the company funneled substantial sums into shell companies and laundered money through hawala networks, using illicit funds to acquire properties both domestically and abroad.
In addition to the searches at Singh's residence, the ED also targeted Gian Sagar Medical College and Hospital, which has faced controversies in the past and was temporarily shut down before resuming operations. The ED team arrived at the hospital around 9:30 AM, securing administrative offices and beginning to seize records for further scrutiny. Media personnel were barred from entering the premises during the raid.
As the investigation unfolded, Khachariyawas, a Rajasthan Congress leader and former minister, also faced scrutiny. His residence in Jaipur was among the locations searched by the ED. Khachariyawas, who is the nephew of former Vice President Bhairon Singh Shekhawat, had previously been questioned by the ED in August 2020 regarding his family's alleged involvement in the PACL case and related land transactions.
Speaking to reporters outside his home, Khachariyawas expressed confusion over the searches, stating, "There was a case related to Pearl Group against me but it was closed. I don’t know why they are searching. They are asking questions from us. It (PACL) was a reputed company and there was a BJP government both in the Centre and state (Rajasthan). If such things were happening, where was the government then?" However, he later clarified that no specific case related to PACL was mentioned against any family member, adding that he received a notice early in the morning informing him of the searches without specifying a reason.
The PACL scam has drawn significant attention due to its scale and the involvement of high-profile individuals. The ED's ongoing investigation suggests that the agency is keen on unraveling the intricate web of financial transactions associated with the scam. The agency's focus on Kulwant Singh and Khachariyawas indicates a broader effort to address corruption and financial misconduct within the political landscape.
In the past, Singh has been questioned by the ED regarding a separate case linked to alleged drug trafficking. His political career began in 2015 when he became the mayor of the Mohali Municipal Corporation with support from the Congress party. He later joined the Shiromani Akali Dal but was expelled for anti-party activities after an unsuccessful bid for municipal elections in 2021. Singh ultimately joined the AAP in December 2021, securing a party ticket for the Mohali constituency and winning the 2022 assembly elections.
The ED's raids are part of a larger crackdown on financial irregularities in India, particularly those involving Ponzi schemes that have defrauded thousands of investors. The PACL case is particularly notable for the vast sums of money involved and the high-profile individuals connected to it. As the investigation continues, further developments are anticipated, which may shed light on the extent of the alleged fraud and the accountability of those involved.
As of late Tuesday evening, the ED had not released an official statement regarding the operation, but sources confirmed that the investigation is ongoing and more actions could follow as they delve deeper into the allegations against PACL and its associates.
