PATIALA: The Punjab and Haryana High Court on Thursday issued notices on a Public Interest Litigation (PIL) seeking a court-monitored CBI investigation into allegations of a cash-for-transfer and corruption racket involving senior Punjab government functionaries and private intermediaries.
A division bench comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor described the allegations as “serious” and directed the Enforcement Directorate (ED) to place on record communications sent by the agency to the Punjab Director General of Police.
The court also asked the Punjab government to clarify the action it proposes to take on the allegations.
The matter will be heard next on September 3, 2026.
ED Sent Three Communications to Punjab DGP
During the hearing, Additional Solicitor General Satya Pal Jain, appearing for the ED, informed the court that the agency had sent three communications under Section 66(2) of the Prevention of Money Laundering Act (PMLA)to the Punjab DGP.
The communications were sent on:
- July 24, 2026
- July 31, 2026
- August 7, 2026
According to the ED, the communications related to alleged irregularities that had come to light during its investigation.
The court has now directed that these communications be placed on record, potentially providing the bench with details of the material and concerns communicated by the central agency to the state police.
PIL Seeks Court-Monitored CBI Probe
The PIL has been filed by advocate Nikhil Saraf, who has sought a CBI probe monitored by the High Court into the allegations.
The petition alleges widespread corruption in bureaucratic transfers, policy decisions and government tenders, allegedly involving individuals operating close to the Chief Minister’s Office.
The plea claims that digital evidence and financial trails gathered during an ED investigation point towards several instances of alleged misconduct across different departments of the Punjab government.
The allegations, however, remain matters for investigation and adjudication, and no findings of wrongdoing have been recorded against the individuals named or referred to in the petition at this stage.
Alleged Influence Over Transfers and Postings
One of the major allegations in the PIL concerns the alleged manipulation of bureaucratic transfers and postings.
According to the petition, an Officer on Special Duty (OSD) to the Chief Minister and a private intermediary allegedly exercised influence over the postings and transfers of more than 20 senior IAS, IPS, PCS and DSP officersin exchange for money.
The plea alleges that the alleged network had access to the administrative process and could influence decisions concerning the appointment and transfer of senior government officials.
The petition further alleges that draft transfer lists and classified administrative files were leaked to unauthorised persons before their official issuance.
If established, such allegations could raise serious questions concerning confidentiality, administrative integrity and the functioning of the state’s transfer and posting mechanism.
Allegations Extend to Government Tenders
The PIL also raises allegations concerning kickbacks, irregularities and cartelisation in government tenders.
Among the matters referred to in the petition are alleged irregularities relating to the procurement of fortified rice kernels through Markfed and the Food and Civil Supplies Department.
The plea has also alleged cartelisation in transport contracts, suggesting that certain procurement and contracting processes may have been manipulated.
These allegations are part of the wider set of issues on which the petitioner is seeking an independent investigation.
Mohali Land Allotments and Change of Land Use
The petition has also alleged off-record cash transactions in connection with land allotments by the Punjab Small Industries & Export Corporation (PSIEC) in Mohali.
The PIL further raises questions over alleged irregularities concerning change of land use (CLU) clearances.
According to the allegations, certain administrative and regulatory approvals were allegedly expedited or influenced through improper means.
The court has not yet adjudicated on the truth of these allegations.
Allegations of Expedited Arms Licences
Another allegation contained in the PIL relates to the alleged expediting of arms licences.
The petitioner has claimed that the alleged network extended beyond transfers, tenders and land-related matters to other areas involving government permissions and regulatory clearances.
The wide range of allegations has prompted the petitioner to seek a central agency investigation rather than relying solely on an inquiry by the state machinery.
Punjab Government Questions PIL’s Maintainability
During the hearing, Punjab Advocate General Maninderjit Singh Bedi raised a preliminary objection concerning the maintainability of the PIL.
He also questioned the credentials of the petitioner.
The objection puts the procedural foundation of the petition itself in issue before the court considers the substantive allegations in detail.
The court, however, proceeded to issue notices after considering the allegations and directed the ED and the state government to provide relevant information.
Centre, ED and CBI Accept Notices
The counsel representing the Centre, ED and CBI accepted the notices issued by the High Court.
The ED’s submission regarding its three communications to the Punjab DGP was particularly significant, as it established that the central agency had already communicated concerns regarding the alleged irregularities to the state police.
The court has now sought those communications on record.
Court to Hear Matter Again on September 3
The next hearing in the matter is scheduled for September 3, 2026.
By then, the court is expected to consider the responses and material placed before it, including the ED’s communications to the Punjab DGP and the Punjab government’s proposed course of action.
The proceedings could determine whether the allegations warrant further judicial intervention or an independent investigation by a central agency.
For now, the allegations contained in the PIL remain unproven, and the High Court’s issuance of notices does not amount to a finding of guilt or confirmation of the alleged corruption racket.
Key Allegations in the PIL
- Alleged cash-for-transfer racket involving more than 20 IAS, IPS, PCS and DSP officers.
- Alleged influence of an OSD to the Chief Minister and a private intermediary over postings and transfers.
- Alleged leakage of draft transfer lists and classified administrative files.
- Alleged irregularities and kickbacks in fortified rice kernel procurement through Markfed and the Food and Civil Supplies Department.
- Alleged cartelisation in transport contracts.
- Alleged off-record cash transactions linked to PSIEC land allotments in Mohali.
- Alleged irregularities in change of land use clearances.
- Alleged expediting of arms licences.
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