The Central Bureau of Investigation has re-registered a case on the request of Haryana Government and taken over the investigation of FIR No.03 dated 05.05.2016, earlier registered at Police Station, State Vigilance Bureau, Panchkula (Haryana) against then Chairman HUDA; then Chief Administrator, HUDA; then Administrator, HUDA; then Financial Commissioner, Town & Country Planning Department, Haryana; a New Delhi based Journals Company and others.

It was alleged that the Institutional Plot No.C-17, located at Sector 6, Panchkula measuring 3500 square meters was allotted to New Delhi based Journals Company by the Haryana Urban Development Authority (HUDA) on 24.08.1982 and the possession was delivered on 30.08.1982. As per the terms and conditions of allotment, it was necessary for the company to start the construction over the plot within six months from the date of delivery of possession and to complete the construction within two years. The company failed to raise the construction within the given time. Hence, the allotment was cancelled. The appeals filed against cancellation of allotment have been dismissed.

It was further alleged that the then Chairman, HUDA in violation of the rules and by misusing his official position re-allocated the plot on 28.08.2005 to New Delhi based Journals Company at original rates plus interest thereon till date and further ordered to start the construction over the plot within six months and complete the same within two years, thereby causing an alleged loss of Rs. 62 lakh (approx) to the Government of Haryana..

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