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Ludhiana: Shops near Ladhowal bypass given at INR 1,100 rent under probe for fraud

#Law & Policy#Commercial#India#Punjab#Ludhiana
Last Updated : 15th Jul, 2025
Synopsis

Ludhiana's DDPO has annulled leases for 70 shops in a prime area near Ladhowal bypass after an internal audit found forged procedures, negligible rent and lack of approvals. Agreements were executed without technical, administrative or market-rate evaluations, committing INR 1,100 per month in perpetuity-far below market value. The DDPO has served eviction notices and launched legal proceedings against two implicated officials. A transparent re-allotment process is on the cards, while deeper probes aim to uncover if more staff were involved in the scheme.

The District Development and Panchayat Officer (DDPO) revoked the allotments of 70 shops in Jainpur after casting doubt on the integrity of the process, which bypassed technical vetting, administrative sign-off and market-based rent assessments.


The tenants had secured perpetually low INR 1,100 monthly leases-an implausibly low rate for shops in a high-value commercial corridor near the Ladhowal bypass. Internal auditors uncovered what they termed a forged procedure, prompting immediate action.

Two officials, one already suspended on unrelated charges and another posted to Mohali, are under formal investigation. An insider noted that the technical wing, charged with rate evaluation, was entirely bypassed-a glaring lapse given that the land's true value likely runs into crores. Eviction notices are being dispatched, and a fresh allotment drive, in full compliance with technical and administrative protocols, is being prepared.

This scandal echoes earlier cases in the region. For instance, the Enforcement Directorate previously seized property worth INR 5.58 crore related to alleged forgery and corruption involving the Ludhiana Improvement Trust, where plots were allegedly illicitly allotted under the LDP scheme. Investigators found manipulated waivers and bribes linked to ineligible beneficiaries

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