The Enforcement Directorate (ED) has arrested Praveen Kansal and Neeraj Kansal, promoters of the Royale Estate Group, in connection with a money laundering investigation tied to alleged financial irregularities in Punjab’s real estate sector, officials said on Friday.Punjab real estate money laundering probe: ED arrests promoters of Royale Estate GroupThe duo was taken into custody in Delhi after coordinated searches carried out earlier this week under the Prevention of Money Laundering Act (PMLA) across multiple locations in Chandigarh, Zirakpur, Mohali and surrounding areas linked to the group and its associated entities.Raids across tricity According to officials, ED teams from Chandigarh and Delhi conducted simultaneous searches at five to six premises connected to Chandigarh Royale City Promoters Pvt Ltd and the Royale Estate Group. During the raids, investigators reportedly seized financial documents, digital devices, property transaction records and data related to inter-company fund transfers.Origin of the probeThe investigation stems from a Punjab Police case registered on July 19, 2025, against directors and associates of Chandigarh Royale City Promoters Pvt Ltd. The FIR includes allegations of cheating, criminal conspiracy and non-payment of statutory dues owed to the Greater Mohali Area Development Authority (GMADA).Authorities are also probing dishonoured cheques for ₹32.67 crore linked to a residential colony project in village Karala in SAS Nagar district.Allegations under scrutinyThe ED suspects that funds collected from homebuyers were diverted through a network of related companies and associated entities. Investigators are examining possible layering of funds, suspicious inter-company transactions, and alleged violations in change of land use (CLU) approvals granted for real estate projects.Officials are also looking into whether buyer funds intended for project development were instead routed into other business entities or used for non-project-related expenses.Wider crackdown The arrests are part of a broader ED crackdown on developers operating in the Mohali-Zirakpur belt, where several cases of alleged fund diversion, regulatory violations and stalled projects have recently surfaced.The action comes shortly after the arrest of builder Sanjay Sehgal in the Suntec City case, in which investigators alleged forgery of farmer consent documents and irregularities in securing land-use approvals for large housing projects.Regulatory angle under reviewThe ED is also examining the possible involvement of officials linked to regulatory approvals in multiple real estate projects across the region, particularly concerning CLU permissions and compliance with development norms.Officials said the investigation is on and further arrests or seizures cannot be ruled out as financial trails and corporate linkages are being analysed.