ED Arrests Punjab Minister Sanjeev Arora In Money Laundering Case

Punjab Industries Minister Sanjeev Arora has been arrested by the Enforcement Directorate in a money laundering case involving alleged fake GST purchases and illicit fund transfers, escalating political tensions in the state.

The Enforcement Directorate on Saturday arrested Punjab industries minister Sanjeev Arora in connection with a new money laundering case involving him and several entities allegedly linked to him, officials said.

According to officials, Arora (62) was taken into custody under the Prevention of Money Laundering Act (PMLA) following early morning raids at his official residence in Chandigarh. They noted that he was "non-cooperative" during the investigation and will be brought to Delhi.

Details of the ED Raids and Investigation

The ED conducted searches at five locations across northern India as part of this operation, which included two premises in Delhi and a company named Hampton Sky Realty Ltd in Udyog Vihar, Gurugram.

These raids came after the central agency registered a new case under the criminal sections of the Prevention of Money Laundering Act (PMLA), officials mentioned.

On April 17, the ED raided Arora and his linked entities under the civil provisions of the Foreign Exchange Management Act (FEMA).

As part of this action, officials said, the agency provisionally attached on April 19 the movable and immovable assets of Hampton Sky Realty Ltd, its director Arora, and entities linked to him for alleged FEMA violation through bogus sales and exports to the tune of Rs 157.12 crore.

Arora, 62, is an Aam Aadmi Party (AAP) MLA from the Ludhiana West assembly seat.

Political Reactions and Allegations

Punjab Chief Minister Bhagwant Mann condemned the raids during a press conference in Sangrur, accusing the BJP-led Central government of using agencies like the ED and the CBI as "weapons" to pursue political goals.

"The end of this unethical alliance of ED-BJP will begin from Punjab," Mann claimed in a post on X.

The latest probe (under the PMLA) pertains to "fake" GST purchases of mobile phones worth more than Rs 100 crore and subsequent exports to "round trip" alleged illegitimate funds from Dubai to India, according to the ED.

The ED alleged that multiple fake GST purchase invoices were acquired from "non-existing" firms in Delhi to falsely claim Input Tax Credit (ITC).

Arora's Response and Previous Investigations

Following the April searches, Arora stated that he would cooperate fully with the investigators and expressed confidence that the truth would prevail.

The AAP has called the raids a political witch hunt launched at the behest of the BJP government at the Centre as Punjab goes to polls early next year.

Arora was already under investigation in an earlier money laundering case, which included an ED raid in 2024, where he and his associates were accused of misusing industrial land for residential developments while he was a Rajya Sabha MP.

Recent ED Actions in Punjab

In recent weeks, the ED has taken significant actions against politically connected individuals in Punjab, which is set to hold elections in early 2027.

Among others, the agency raided the premises of Lovely Group promoter and Rajya Sabha MP Ashok Kumar Mittal, who defected to the BJP along with six other AAP MPs following these raids.

Earlier this week, the agency conducted raids on various Punjab builders and real estate companies, as well as an alleged associate of an AAP functionary, making allegations against Punjab AAP President and Cabinet Minister Aman Arora, who has described the ED's claims as a "fabricated narrative."