Key Highlights
- High-Profile Arrest: Sanjeev Arora taken into custody in Chandigarh after a seven-hour interrogation.
- Coordinated Raids: Operations conducted across five premises in Chandigarh, Delhi, and Gurugram.
- Fraud Allegations: Case involves over ₹100 crore in fake GST purchases and fraudulent Input Tax Credit (ITC) claims.
- Corporate Link: Hampton Sky Realty Limited, a company linked to the Minister’s family, is under the scanner.
- Political Fallout: AAP leadership, including CM Bhagwant Mann, has condemned the move as a “political vendetta” ahead of upcoming elections.
In a significant blow to the Aam Aadmi Party (AAP) government in Punjab, the Enforcement Directorate (ED) arrested Sanjeev Arora, the Minister for Industries, Commerce, and Investment Promotion, late Saturday evening. The arrest followed a rigorous seven-hour search and interrogation session at his official residence in Chandigarh’s Sector 2. Arora, a key link between the state government and the industrial sector, is the most prominent figure to be detained in this expanding financial investigation.
The agency’s move was part of a coordinated strike that began at 5:00 AM, involving approximately 20 officials and eight vehicles. Simultaneous searches were carried out at five locations across North India, including the Minister’s residence and the corporate offices of Hampton Sky Realty Limited in Gurugram’s Udyog Vihar.
The ₹100 Crore GST and Money Laundering Network
The core of the ED’s case rests on a newly registered First Information Report (FIR) under the Prevention of Money Laundering Act (PMLA). Investigators allege that Arora, through his associated business entities, orchestrated a massive network of fake GST purchases. The scheme reportedly involved generating fraudulent purchase invoices for mobile phones worth over ₹100 crore from non-existent shell firms based in Delhi.
According to agency sources, these fake transactions were utilized to claim undue Input Tax Credit (ITC) and wrongful GST refunds on export credits. Furthermore, the ED suspects a sophisticated “round-tripping” operation, where the proceeds of these crimes were funneled through export channels to Dubai and subsequently brought back to India to appear as legitimate capital. This alleged activity has reportedly caused substantial losses to the government exchequer while facilitating personal enrichment.
Background and Regional Context
Sanjeev Arora, the 62-year-old MLA from Ludhiana West and a former Rajya Sabha member, has been under the central agency’s lens for several months. In April 2026, the ED conducted civil raids against him under the Foreign Exchange Management Act (FEMA), which led to the provisional attachment of assets worth ₹157 crore linked to Hampton Sky Realty Limited.
The Minister has consistently denied all wrongdoing, maintaining that he would cooperate fully with investigators. However, the escalation from civil searches to a criminal arrest under the PMLA marks a critical turning point in the probe.
Political Reaction and “Project Freedom” Parallels
The arrest has triggered a fierce political storm in Punjab. Chief Minister Bhagwant Mann and AAP national convener Arvind Kejriwal have both lashed out at the central government, accusing the BJP of using investigative agencies as political “contract killers.” AAP leaders noted that the timing of the arrest, coming less than a year before the February 2027 state elections, is an attempt to destabilize the ruling party.
The arrest also comes amidst a broader climate of investigative pressure on AAP leaders, mirroring recent actions against other party functionaries. While the government claims the arrest is a direct result of evidence found during the search, the AAP maintains that it is a tactical maneuver to coerce opposition leaders. Sanjeev Arora is expected to be produced before a special PMLA court on Sunday, where the ED will seek custodial interrogation to further trace the illicit financial trail.
