ED arrests Punjab minister Sanjeev Arora in Rs 100 crore money laundering probe; AAP slams BJP

The Enforcement Directorate (ED) arrested Punjab’s industries minister Sanjeev Arora on Saturday in connection with an ongoing Rs 100 crore money laundering probe linked to alleged fraudulent Goods and Services Tax (GST) transactions. ED officials said Arora was arrested under the Prevention of Money Laundering Act (PMLA). The Punjab industries minister was taken into custody hours after the ED conducted raids at five locations across Delhi, Gurugram, and Chandigarh, including his official residence in Chandigarh as well as premises linked to his associates and companies.

ED teams reached Arora’s official residence in Chandigarh’s Sector 2 around 7 am and began search operations shortly after 7.25 am. Officials arrived in nearly 20 vehicles, while around three dozen personnel were deployed for security.

Apart from Chandigarh, searches were also conducted at two locations in Delhi and at Hampton Sky Realty Ltd in Gurugram’s Udyog Vihar.

‘Generated fake purchase bills for mobile phones’

According to ED, Arora and entities linked to him generated fake purchase bills for mobile phones through non-existent firms operating out of Delhi. These transactions were allegedly used to fraudulently claim input tax credit (ITC), GST refunds, and export-related benefits.

The proceeds from the transactions were routed through exports and later “round-tripped” from Dubai to India in an attempt to legitimise illicit funds, says ED.

Arora, 62, is MLA from Ludhiana West and a former Rajya Sabha member. His arrest comes less than a year before Punjab is scheduled to go to the polls in February 2027.

Reacting to the arrest, AAP leaders linked it to the upcoming elections and accused the BJP-led Centre of pursuing a campaign of political vendetta through central investigative agencies.

AAP leaders slam ED raids, minister’s arrest

“By conducting ED raids, their purpose is not to find any black money or illegal documents. Their purpose is to send a message to the person being raided that if they join the BJP, everything will be forgiven,” Punjab Chief Minister Bhagwat Mann told reporters in Sangrur.

AAP national convenor Arvind Kejriwal also attacked the BJP and said the arrest would backfire on the saffron party.

“Modi ji, go ahead and conduct four more ED raids—the BJP will lose deposits on all its seats. The leaders you arrest may come out in four days, but the BJP will not be able to set foot in Punjab for the next twenty years,” Kejriwal posted on X.

As part of the probe, the agency provisionally attached movable and immovable assets worth Rs 157.12 crore linked to Hampton Sky Realty Ltd, Arora and related entities over alleged bogus sales and exports.

Earlier this week, the agency raided Punjab builders, real estate firms, and alleged associates of Punjab AAP president Aman Arora, who dismissed the allegations.

Hampton Sky Realty Ltd. denies ED’s allegations

Hampton Sky Realty Limited refuted the allegations by ED against Arora as “factually untenable”. It said the allegations are based on supplier-side GST issues in which the company itself was the complainant.

The firm said in a statement that all its mobile phone exports were genuine, fully verified through customs and banking channels, and denied allegations of money laundering or round-tripping of funds through Dubai.

It claimed that it exported over 44,000 branded handsets and accessories, including Apple iPhones, AirPods and Samsung devices and every export shipment underwent physical customs examination, IMEI verification through the ICEGATE system, and cross-checks by manufacturers including Apple Inc. and Samsung Electronics.

It also claimed thatall export proceeds were received through authorised banking channels and fully paid to domestic suppliers, leaving “no economic basis” for allegations of round-tripping or bogus exports.

The GST ‘issues’ related only to a small percentage of suppliers, it said, claiming that it was itself a victim of alleged supplier fraud and had lodged an FIR in Ludhiana in May 2025 against three suppliers.