Punjab HC hands over ED's 'cash-for-transfers' probe against CM Mann's office to CBI

CHANDIGARH: The Punjab and Haryana High Court on Monday directed the Central Bureau of Investigation (CBI) to register a criminal case to probe allegations of corruption linked to Punjab Chief Minister Bhagwant Mann's office — "cash for transfers, cash for getting favourable policies, cash for tenders and such other illegal activities" — which were raised by the Enforcement Directorate (ED) in three letters to the Punjab DGP.

Pronouncing the order in the open court, a division bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor directed the CBI to register a criminal case and submit a status report within two months.

The court further ordered the Punjab government and state police to render full cooperation and assistance to the central agency during the inquiry.

The Bench asserted it was of the considered view that a fair and transparent investigation was required to be carried out in the matter. "We are also not impressed by the manner in which Punjab Police has acted so far in the matter and, therefore, we deem it appropriate to entrust investigation of the present case to the Central Bureau of Investigation which will register an FIR in the matter and proceed with the investigation forthwith," the bench stated.

The order was passed on a public interest litigation (PIL) filed on August 27 by advocate Nikhil Saraf. Saraf sought an independent central probe after state authorities failed to act on three formal communications sent by the ED to Punjab DGP Gaurav Yadav between July 24 and August 12.

Punjab Police asks ED for complete, legible material in ‘cash-for-transfers’ case, demands official to be deputed

The PIL alleged widespread corruption by senior state officials across multiple domains, including cash-for-transfers, policy manipulations, and tender allocations. Saraf told the court that the Punjab Police had failed to take appropriate action on the letters written by the ED for probe into the allegations against Mann's Officer on Special Duty (OSD) Rajbir Singh Ghuman.

According to the ED's letter, which was derived from material seized during an ongoing money-laundering investigation involving GMADA land allotments , a private individual named Nitin Gohal acted as an intermediary for Rajbir Singh Ghuman, the officer on special duty (OSD) to Chief Minister Bhagwant Mann.

The ED alleged that Gohal, in collusion with Ghuman and other associates, including Bir Devinder and Jitin Gohal, operated an organised bribery network out of the chief minister’s office. They allegedly collected crores in cash and real estate in exchange for influencing IAS/IPS postings, leaking confidential government files, facilitating arms licences, and clearing commercial projects.

Appearing before the Bench, the ED had earlier blamed the government for not acting on the letter sent by its Jalandhar zone to the state DGP. "The government did not perform its Rajdharam; instead it indulged in Rajnitik Dharam," senior advocate and Additional Solicitor-General Satya Pal Jain had contended.

The state government had opposed the PIL, questioning its maintainability and the credentials of the petitioner.

Appearing for the state, advocate general argued that the police were actively examining the matter and maintained that an FIR could not be registered without completing a preliminary inquiry, seeking a three-week extension on September 14, when judgment was reserved.

The petitioner, Saraf, had stated that communications had been sent by the Enforcement Directorate under Section 66(2) of the Prevention of Money-Laundering Act, 2002, to the State of Punjab. "Despite such facts as well as other facts of corruption in high public office, having been highlighted by the petitioner also, no action is being taken in the matter," he added.

ED writes third letter to Punjab Police, seeks FIR registration in money-laundering case

The petition also stated that a part of the complaint was available on social media with various journalists and politicians. According to the petition, the main allegations were against public persons, public servants and other private individuals working in the chief minister's Office.

The petition said some of them were very close to the family of the chief minister. The petition also alleged that they were running a very deeply rooted bribery scandal. They were allegedly influencing transfers of IAS officers, police officials and other crucial positions in different departments of the Government of Punjab.

The petition also referred to allegations of getting tenders, permissions and licenses for certain builders, land developers and other entrepreneurs. It had also alleged that an institutionalized extortion racket was being run by falsely implicating people.

Advocate Ravi Kamal Gupta represented the CBI.

Welcoming the court’s decision, Leader of Opposition and senior Congress leader Pratap Singh Bajwa said he hoped the CBI would conduct a "fair, impartial and time-bound investigation" and ensure that those responsible for allegedly misusing public funds are held accountable.

"I welcome the Hon’ble High Court’s decision and hope the CBI conducts a fair, impartial and time-bound investigation. Those who looted Punjab’s exchequer must be booked and punished, irrespective of how powerful they are," Bajwa said in a post on X.

The Aam Aadmi Party had accused the Central government of using the ED to defame the state government.